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MESA, AZ-Heitman LLC has beat out a slew of memorandums of intent and 25 solid offers to acquire the 676-unit Lakeview Apartments for $59.4 million.
The 1829 S. Powers Rd. complex attracted interest from investors and condo converters during the two-month marketing period, though the property overall is too large for conversion, says David C. Martin of Moran & Co.'s Mountain States office in Denver. He and colleague Pam Koster represented the seller, Nearon Enterprises LLC of Danville, CA.
"Heitman had a proven track record and the ability to execute. A good reputation was the number one reason why Heitman was chosen," Martin says.
Martin tells GlobeSt.com that Nearon sold Lakeview Apartments to pursue a 1031 exchange. As of the closing, Nearon hadn't identified what to acquire with the proceeds, he adds. "This was part of a fund," he explains, "the property had created an opportunity for them and they felt it was time to harvest the gains."
The 1990s-constructed complex, set on 44 acres and built in three phases, was pushing toward full at closing. One-, two- and three-bedroom units are available, ranging from 600 sf to 1,300 sf. Rents go from $750 to $1,080 per month.
Martin says the Chicago-based Heitman most likely will make some minor repairs to the property, but nothing major. "My sense from them was that it could use a paint job on the back part of the property, the second and third phase, and some modest carport and landscaping repairs," he adds, "but nothing major. This was a very well-maintained property."
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