The complex at 1331 W. Baseline Rd., slated for condo conversion, was listed at $12 million plus defeasance. It has about an 8% vacancy rate at the time of closing.
"This became a beauty contest between six of the top offers," says Neil Sherman, senior vice president with Sperry Van Ness' Phoenix office who, with Rue Bax, also with SVP Phoenix, represented the seller. Shawn Nejad of the brokerage house's office in Irvine, CA brokered the buyer of record, Dobson Bay LLC.
The complex was constructed in the 1980s, originally for condo sales. "When it was first built, there wasn't enough of a demand for condominiums so they were simply converted into apartments," Sherman tells GlobeSt.com. "The buyer was willing to pay a better price and move faster on the deal."
The complex contains 36 one-bedroom units with 816 sf each; 95 two bedroom apartments, ranging from 1,136 sf to 1,196 sf; and 35 three-bedroom layouts, each 1,596 sf. Rents begin at $755 and go to $1,170 per month.
Sherman says the conversion is slated to begin during first quarter 2006. He estimates the new owners will invest $10,000 per unit into the changeover. The units are anticipated to be priced from $150,000 to $175,000. "By the third quarter of 2006, it should likely be sold off," Sherman says.
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