Buyer John Walsh got the class C complexes--1980s-era product with 90% occupancies--from a 10-year owner, Ron Nolan of Kansas City, MO. "These communities were both value-added opportunities," says Bert Kempfert, a first vice president in Phoenix for CB Richard Ellis Inc. He tells GlobeSt.com that Walsh was the most qualified buyer out of the 20 investors bidding on the two-property portfolio.
Superstition Villas had a list price of $9.6 million. Situated on 11.4 acres at 2055 E. Hampton Ave. in Mesa, the complex is comprised of 31 single-story buildings in a 50-50% split of one- and two-bedroom units that average 610 sf. The monthly rent averages $513.
To acquire Superstition Villas, Walsh assumed $6.5 million in two loans held by EF&A Funding of Southfield, MI. The debt, amortizing over 30 years, consists of a $1.9-million loan with a 7.2% fixed-rate interest and $4.6-million financing with an 8.1% interest. Both loans are due in 2008.
Similarly, Walsh assume a loan to acquire Riviera Village at 1532 S. Price Rd. in central Tempe. The $4.1-million loan through Cleveland-based KeyBank Real Estate Capital has an interest rate of 7.2% with a 30-year amortization. It is due in May 2008.
Riviera Village, listed for $6.5 million, sits on 10.4 acres. The 21 single-story buildings are laid out with 80 one- and 85 two-bedroom apartments. The average unit is 678 sf; the average monthly rent is $523.
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