The Jacksonville Beach, FL-based company plans to convert the 367-unit Camelback Square Apartments and 312-unit Bacaro Apartments into residential condominiums, according to Duane Jones, a senior vice president of Colliers International's local office. He brokered the transaction on behalf of the seller, a joint venture between local developer, Gray Development Group, and the Hartford-based Lincoln National Life Insurance Co.
Jones tells GlobeSt.com that Montecito acquired the properties in an off-market transaction. "Originally, they planned to hold onto the properties, but Montecito just fell in love with them and made us an offer that was good enough that we didn't need to go to market," he says. "We thought it was a reasonable offer." The pair of 96%-occupied complexes, built in 2003, has brought $143,000 per unit.
Camelback Square, located at 1701 E. Colter Dr., sold for $52.5 million. The mix contains 20 studios, 96 one-, 231 two- and 20 three-bedroom units, ranging from 509 sf to 1,441 sf. The average monthly rent is $1.16 per sf.
The Bacaro, situated at 6900 E. Princess Dr. on the Phoenix-Scottsdale border, sold for $44.6 million. The one-bedroom apartments range from 715 sf to 1,327 sf. Units lease for $1.06 per sf.
According to Jones, condos in the immediate area are selling for $250,000 and up. "These apartments won't require a lot of conversion," he says, adding they already have high-end finishes like granite countertops and designer cabinetry.
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