The buyer got a 95%-leased asset at 711 N. Evergreen Rd., developed in the 1990s by San Diego-based Fairfield Residential LLC. "The Phoenix market has been going through a tough time and some owners just aren't willing to wait it out," Don Smith, president of DM Smith Co. LLC of Orange, CA, explains to GlobeSt.com about Apogee's market exit.
Smith says he was contacted by the buyer's broker, Marc Huisken with Grubb & Ellis|BRE Commercial LLC, to see if Apogee Apartments would consider an offer. "There was some negotiation, but we came to a fair agreement," Smith says.
Smith says the upscale Sienna at Riverview has offered concessions for four consecutive years to maintain the 95% occupancy. "Since 2001, there's been a 20% reduction in rents," he says.
The 18-building complex has 220 one-bedroom units and 120 two-bedroom apartments, ranging from 707 sf to 1,093 sf. Rents go from $595 to $890 per month. "The purchaser made a decent buy based on future rents," Smith says.
According to Smith, the buyer of record, Sienna Riverview I LLC, assumed an $18.5-million loan to close the deal. He says the Fannie Mae loan, with a 7.74% fixed-rate interest, matures in 2007.
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