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San Diego Buyer Makes $11M Bet on Class C Asset

MESA, AZ-A 1031 exchange buyer, A+ Management & Investment Inc., pays $10.1 million for a value-add with a 30% vacancy. Part of the plan is a $500,000 rehab to redo the interiors of the 269-unit Quail Creek.

By Jennifer D. Duell | Updated on April 18, 2005

MESA, AZ-A San Diego investment group is reinvesting capital into the Valley after selling off properties in its backyard. The longtime Phoenix-area investor has just paid $10.1 million for the 296-unit Quail Creek, which is now in line for a $500,00 renovation.

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.

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