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L.A. Buyer Wins Third Apartment Asset for $12M

PHOENIX-As part of its aggressive expansion in the Valley, SRP Investments drops $12.2 million on the 257-unit Casa Real Apartments. The new owner plans to pump $1,500 per unit into upgrading the class B complex.

By Jennifer D. Duell | Updated on July 25, 2005

PHOENIX-An investment group from Los Angeles has made its third multifamily buy in the Valley in 18 months, paying $12.2 million for the 257-unit Casa Real Apartments.

SRP Investments, led by Shoshanti Jogani, was one of 10 bidders on the class B complex at 3816 N. 83rd Ave. “Casa Real offers a value-added opportunity,” says Peter Katz, vice president of investments for Marcus & Millichap Real Estate Investment Brokerage Co. “The interiors are tired and the exterior needs upgrading.” He estimates the buyer will spend nearly $400,000 or $1,500 per unit on upgrades.

Katz, teaming with Marcus & Millichap’s Alon Shnitzer, tells GlobeSt.com that SRP Investments claimed the asset, which was on the market six weeks, because it is a proven closer and was able to get a high leverage loan. He says the buyer obtained $9.8 million from Regions Bank with a 5.31% fixed-rate interest with a 10-year term. Seller Ray Zuckerman of Phoenix is planning to invest in management-intensive assets, says the broker.

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