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PHOENIX-Two California corporations have swapped the deed to the 224-unit Brentwood Apartments, setting up a $10.8-million trade of a 26-year-old asset for $200,000 more than the ask.
The seller of the 13-building complex at 11821 N. 28th Dr. bought it in 2001. At that time, Brentwood/Petree Management LLC of Glendale, CA paid $8.28 million for it.
"There's very little product in the Phoenix area that was as nice, well-located and well-maintained at this price point as this one," comments Neil Sherman, senior vice president in Phoenix for Sperry Van Ness. He and senior investment associate Danny Lee, represented the seller. Sperry's Doug Lazovick teamed with Sherman to negotiate for the buyer, Brentwood-Phoenix LP of Carmichael, CA.
"In a market in which occupancy rates were down and concessions rampant, this property was tight on concessions and had a high occupancy rate," Lee adds. That was also attractive to the buyer."
The brokers say the seller plans to reinvest sale proceeds into land deals, though not necessarily as a direct 1031 exchange. "They've done very well on land investments around the country during the past few years," Lee says.
Sherman points out that the hot market was an incentive for a sale. "It's been a seller's market in Phoenix for the past two years," he tells GlobeSt.com. "They bought Brentwood in 1998 for $37,000 per unit and a sale would represent a pretty nice profit to them. They didn't want to run the risk of the market passing them by."
Situated on eight acres, the 99%-occupied complex has 24 studios, 120 one-bedroom units and 80 two-bedroom apartments. Monthly rents range from $399 to $740.
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