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256-Unit, Class B Multifamily Asset Brings $12M

MESA, AZ-An investor from Berkley, CA enters the Arizona multifamily market with the $12.2-million buy of Reflections at Red Mountain. The seller, Kabili & Co., drops the price from $13.7 million after losing two other contracts.

By Jennifer D. Duell | Updated on April 05, 2005

MESA, AZ-After falling out of escrow twice, Reflections at Red Mountain, a 256-unit, class B complex, trades for $12.2 million to Berkley, CA-based Red Mountain LLC, which assumed a $9.7-million loan to close the sale with the Colorado Springs, CO-based Kabili & Co.

“We went to market at $13.7 million, which was extremely aggressive,” says Rue Bax, an investment adviser with Sperry Van Ness’ Phoenix office. He explains the price for the 2601 E. McKellips Rd. complex came down due to needed repairs and a 7.59% interest rate on a four-year loan with the Newark-headquartered Prudential Financial Inc.

Bax tells GlobeSt.com that Red Mountain liked the 16-building development when it was first put on the market, but thought it was a bit too pricey. “After it fell out of escrow and the price was reduced, we were able to revisit a potential acquisition with the buyer,” he says.

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