(Read more on the multifamily market.)
PHOENIX-Making its second buy in the metro, a local partnership has paid $17 million for Clarendon Park Apartments in an off-market transaction. The partners plan to hold the 138-unit complex at least five years.
Howard Berger of Berger Investment Group Inc. in Phoenix says he approached Arizona Family Communities LLC in La Jolla, CA about acquiring the five-year-old complex at 222 W. Clarendon Ave. Berger teams with Craig Streit, who serves as managing partner for their investments.
"The seller told us he was open to an offer so we submitted an initial offer, then negotiated," Berger says. The buying entity, 2506 W. Dunlap LLC, won a 97%-occupied complex situated on nearly three acres just north of the CBD.
Berger, who represented the partnership, tells GlobeSt.com that the intent is to burn off concessions and raise rents slightly. "The area is close to the new Arizona State University Downtown and is near the light rail," he adds. "There's major renovation going on Downtown and we saw a lot of upside with that too. We consider this an A project in an A location."
Clarendon Park Apartments is a mix of studios, one- and two-bedroom units, ranging from 509 sf to 900 sf. The rent goes from $700 to $1,100 per month.
The partners recently sold the 234-unit Northern Lakes Apartments at 4949 W. Northern Ave. in nearby Glendale for $12.47 million. Berger says he and Streit are looking for more multifamily assets. "He's looking for A-quality properties in A neighborhoods," Berger adds. "He'd like 1998-built properties and newer."
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