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$8M Trade Ropes 214 Units With Turnaround Promise

PHOENIX-A trio of investors from nearby Tempe picks up the 40%-occupied Rancho Encanto Apartments, eyeing the upside from boosting the occupancy and making plans to renovate the complex.

By Amy Wolff Sorter | Updated on August 12, 2005

PHOENIX-A Tempe investment group has closed on the purchase of the 214-unit Rancho Encanto Apartments for $8.1 million, getting a value-add property with upside in its occupancy.

Jabez Properties LLC in Long Beach, CA handed the deed to Encanto Partners LLC of Tempe. Rancho Encanto, located at 3001 and 3007 N. Black Canyon Highway, was built in the late 1970s and was 40% occupied at sale time. “There was a definite vacancy issue here so we’re working on that. And, we’ve already been able to increase occupancy by 10% since closing,” says Sean O’Carroll, a principal in Encanto Partners LLC.

The complex contains four studios with 338 sf each; 41 one-bedroom units, averaging 630 sf; 167 two-bedroom apartments, 840 sf on average; and a pair of three-bedroom floor plans with 960 sf. The monthly rent is running $585 to $595.

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