A+ Management & Investment Inc. of San Diego, an investor of multifamily assets in the Valley since the 1980s, picked up the 70%-leased complex at 1 S. Dobson Rd. near Mesa Community College from Ronald and Ann Bengston of Green Valley, AZ. The class C asset is a value-add opportunity, according to Kevin Hanford, an adviser with Sperry Van Ness' Phoenix office who teamed with Julie Vaughn to represented the sellers.
"There was a lot of interest because of its class B location in south Mesa and because of the price per unit," Hanford tells GlobeSt.com. "The property's vacancy at 30% is way below market." He says a management change and $500,000 of renovation capital, targeting apartment interiors, are key to the repositioning plan. "There's the potential to improve cash flow," he adds. The buyer will lease and manage the asset.
The buyer assumed a $6.9-million loan from Fannie Mae to acquire Quail Creek. The loan, due in 2009, has an interest rate of 6.61%, according to Hanford.
Built in 1979, the 14-building Quail Creek sits on eight acres. The complex is a mix of 66 studios, 139 one-bedroom units, 62 two-bedroom apartments and a pair of three-bedroom designs. Rents range from $450 to $725 per month for units averaging 539 sf.
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