(Read more on the multifamily market.)
TEMPE, AZ-Nuvida Ventures of Del Mar, CA has rolled 1031 exchange money from another local asset into the acquisition of the 172-unit Paxton on Rural. The buyer paid $15.5 million or $90,116 per unit for the class B complex.
According to Ric Holway, vice president with Marcus & Millichap Real Estate Investment Services in Phoenix, Nuvida Ventures will determine within the next month how much money should be invested in the complex at 3409 S. Rural Rd. "He's looking for every opportunity he can to improve the property," says Holway, who brokered the transaction for Residential Equity Partners of Portland, OR.
Holway tells GlobeSt.com that Nuvida exchanged out of the 137-unit Villas Apartments at 1718 S. Jentilly Lane, located about one mile north of Paxton on Rural. In mid-June, Villas Apartments was sold for $15.15 million.
Holway says having the cash helped Nuvida Ventures to beat out five other offers for Paxton on Rural. "The buyer did a short due diligence, and overall, there was a degree of comfort on both sides," he says.
Residential Equity bought the 25-year-old Paxton on Rural in 2005 for $9.6 million. "They realized the asset had increased in value so they decided to take their profit and redeploy the capital," Holway adds.
Situated on seven acres, Paxton on Rural has studio apartments and one-, two- and three-bedroom units. The apartments range from 500 sf to 1,250 sf. Monthly rents range from $709 to $989. Nuvida plans to manage the complex.
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