The joint venture buyer plans to spend more than $2.5 million on interior and exterior renovations at the 88%-occupied Wyndham Park Apartments at 5104 E. Van Buren St., says Glenn Daiutolo of Bascom Arizona, who teams with partner Jerry Finney to search for acquisition opportunities for a partnership comprised of Bascom Group LLC and Multifamily Advisors LLC. The latest deal takes the Arizona portfolio to 1,277 units.
Daiutolo tells GlobeSt.com that Wyndham Park Apartments, sold by Yardley, PA-based Berwind Property Group Ltd., is a class C development in an area with a lot of class A complexes that are selling for $85,000 per unit. "We feel like we bought it well below replacement cost," he says.
Berwind's broker, Alon Schnitzer in Marcus & Millichap's Phoenix office, says Wyndham Park Apartments traded for $28,200 per unit at a 4.9% cap rate. Schnitzer, partnering with Marcus & Millichap's Peter Katz, says Bascom Arizona bested seven other buyers to win the deal.
Built in 1983, Wyndham Park Apartments has 23 two- and three-story buildings positioned on 12.5 acres. The unit mix has 168 studios, 288 one-bedroom designs and five two-bedroom apartments, averaging 394 sf. The monthly rent averages $473.
Commercial Services Building Inc. was hired to renovate the complex. The buyer also hired Tucson-based Morrison, Ekre & Bart Management Services Inc. to manage it. Bascom Arizona leveraged the acquisition with a loan from Wells Fargo Bank. Gary Mozer and Lee Norman of George Smith Partners in Los Angeles arranged the financing.
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