Buyer Shahram Afshani has picked up the 90%-leased Glenbrook Apartments at 8665 E. Speedway Blvd. "This property is a repositioning play in an infill location," says Peter Katz, vice president of investments for Marcus & Millichap Real Estate Investment Co. He teamed with Alon Shnitzer and Mike McClain to broker the deal.
Katz tells GlobeSt.com that Afshani was one of eight would-be buyers. Although he wasn't the highest offer, he won the deal because he was willing to assume a $3.86-million, Fannie Mae loan so the seller didn't have to incur pre-payment penalties, according to Katz.
"Assuming the loan was a strategic agenda because Afshani can invest his 1031 proceeds, reposition the property and then refinance it, allowing him to pull out a significant amount of equity without incurring taxes on it," Katz explains. The loan, bearing a 7.6% interest rate, matures in late 2008.
Katz says Afshani most likely will spend $200,000 to $300,000 to upgrade the 23-year-old Glenbrook Apartments. The holding has 216 one-bedroom units, ranging from 470 sf to 630 sf, and 16 two-bedroom apartments with 830 sf to 900 sf. Monthly rents range from $400 to $655.
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