PHOENIX-A high-net worth investor from San Diego, CA, has made his first acquisition in the Valley, paying $13.66 million for The Ridge at Sun Valley, a 264-unit apartment complex.
The buyer, doing business as ADC-Ridge at Sun Valley LLC, bought the class A property in an all-cash transaction from Alcurt Phoenix II LLC, which foreclosed on the property. The developer, Cleveland, OH-based Wallick Companies lost the property to foreclosure in July 2010.
“This buyer evaluated Phoenix five years ago but couldn’t get comfortable with where the market was going and chose to invest in the Pacific Northwest instead,” says Steve Gebing with Marcus & Millichap’s National Multi Housing Group. “He started looking in Phoenix again about a year ago, searching for properties no older than 1990.”
Gebing and partner Cliff David marketed the property and toured the property with 35 potential buyers. “The property received significant interest,” he says. “If the buyer’s offer hadn’t been accepted midway through the marketing process, I think we would have received more than 15 offers for the property.”
Gebing tells GlobeSt.com the buyer acquired The Ridge at Sun Valley for nearly 50% less than its replacement cost. “You couldn’t build a property like this for anything less than $100,000 per unit, and the buyer got this property for under $52,000 per unit,” he points out, adding that the owner will also enjoy significant upside from increased occupancy and concession burn-off. At the time of closing, the property was 81% occupied.
Located at 801 North 59th Avenue, The Ridge at Sun Valley was completed in September 2004. It features 176 two-bedroom two-bath apartment homes at 921 square feet and 88 three-bedroom two-bath apartment homes at 1,107 square feet. Units offer nine-foot ceilings, full-size washer/dryers, split master bedroom floor plans, oversized walk-in closets, fully equipped kitchens, custom cabinets with raised panels, individual exterior storage rooms and covered private patios/balconies.
Community amenities include two swimming pools and two spas, outdoor ramadas with built-in barbecues, a standalone rental office, clubhouse, business center and fitness center. The property also offers an activity building for parties, crafts and after-school programs.
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