(Read more on the multifamily market.)
PHOENIX-A Colorado buyer has beat out nearly a dozen offers with a $34-million offer for the 380-unit Alegria Apartments. The new owner plans to invest another $2.7 million into upgrading the class B asset.
According to David Corson, director of acquisitions for Greenwood, CO-based Baron Properties LLC, the 1980s-built Alegria offered upside through its location at 15202 N. 40th and the ability to raise rents upon renovation completion. "We liked the location as it sits in northeast Phoenix," Corson says. "In that quadrant, it's near Scottsdale and Paradise Valley, which are high-end home markets." As a result, Baron moved quickly when Hamilton Zanze & Co. of San Francisco put the 92%-leased asset on the market.
Cindy Cooke, senior vice president in Phoenix for Colliers International Inc., says the buyer's aggressiveness, quick due diligence and understanding of the property gave it an advantage over other bidders. She adds that Hamilton Zanze, which acquired the asset in 2005 for $23.8 million, reached its goal for Alegria ahead of schedule by stabilizing it, renovating it and raising the rents. "Baron will take it to the next level," she adds.
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