(Read more on the multifamily market.)
PEORIA, AZ-An investment group from Southern California has increased its holdings in the area, buying the 198-unit Northwest Garden for $15 million. The buyer, fueled with 1031 exchange proceeds, has beat out five other offers for the 90%-leased, class B complex.
According to Ric Holway, vice president with Marcus & Millichap Real Estate Investment Services' Phoenix office, Northwest Garden at 9350 N. 67th Ave. offered Southwest Equity Partners an opportunity to upgrade its portfolio. Southwest Equity had sold the 186-unit Park on Osborn at 1502 E. Osborn Rd. in Phoenix for $12 million. "He traded out of a 1953 product into something that's much newer and has more amenities," says Holway, who represented the seller, Holualoa of Tucson.
Holway tells GlobeSt.com that Holualoa liked the fact that Southwest Equity, which was self-represented in the transaction, could verify funds. The seller also liked the buyer's experience in the submarket and its due diligence on the deal. "This is what really inspired the seller to move forward on the deal," he adds.
Holway says Holualoa acquired Northwest Garden in 1997 for $6.9 million. The partnership decided to sell the 23-year-old complex to reposition capital. "They really did a good job of maintaining the asset over the years," he adds.
Northwest Garden, positioned on 9.75 acres, is a mix of one- and two-bedroom units ranging from 600 sf to 970 sf. The monthly rent goes from $585 to $765. RMI Management LLC of Las Vegas has been hired to lease and manage the complex.
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