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PHOENIX-A private investor from California has invested in his second multifamily property in the metro area, the 428-unit Hunters Ridge. He also has assumed the four-year balance on a loan with a 7% interest rate.
In his second area multifamily property purchase within a month, Tom Fair of Bronco Real Estate Corp. in San Rafael, CA has acquired the 428-unit Hunters Ridge complex at 8903 N. 19th Ave. from Dallas-based DP Partners for $16.35 million. Cindy Cooke and Bret Zinn with Colliers International Inc.'s Phoenix office represented the investor while the seller was self-represented.
"He's very high on the Phoenix market," Zinn says, "and believes that Phoenix is due for some rent growth because rents have been flat for the last couple of years." Added to that, he tells GlobeSt.com, is the slow-down of multifamily construction and the fact that "a good portion of the sales taking place has been for condo conversions, which has taken those properties out of the rental group." He could not say whether Fair would purchase more multifamily properties in the near future.
The buyer assumed a Freddie Mac loan with a 7% interest rate and is due in 2009. "The ask on the property for the loan assumption was $16.5 million," Zinn adds.
The complex, built in 1987, contains 272 one-bedroom units, ranging from 465 sf to 683 sf, with an average rent of $465 to $552 per month; and 156 two-bedroom apartments with floor plans of 792 sf to 911 sf, and monthly rents running from $597 to $702.
Zinn says that the new owner definitely has some renovation plans for the complex, including a paint job, clubhouse overhaul, new pool furniture and addition of washers and dryers. "The property needs a lot of TLC work," he says. "Structurally, it's fine and looks okay."
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