PHOENIX—Berkadia Commercial Mortgage LLC announced today the sale of Esteban Park, located at 5611 S. 32nd St. in Phoenix. The multifamily asset sold for $20.7 million. The seller was Esteban Park Apartments LLC of Scottsdale; the buyer was Carlibach LP of Mill Valley, CA. The property was 98% occupied at the time of sale.
Senior partner Mark Forrester, partner Ric Holway and vice president Dan Cheyne of Berkadia's Phoenix office negotiated the transaction.
Built in 2008, the 204-unit property features one-, two- and three-bedroom floor plans. Each unit features fully equipped kitchens, granite countertops, custom cabinetry, washers and dryers, ceiling fans, hardwood flooring, air conditioning, spacious closets and balconies/patios. Community amenities include a swimming pool, Jacuzzi, spa, ramadas, clubhouse, fitness center, volleyball, billiards, carports and controlled-access gates. Select units have pantries, extra storage and mountain views.
Forrester tells GlobeSt.com, “There are not a lot of apartments in the area. In fact it is very difficult to get zoning for apartments in that location. Esteban Park is only one of four or five in the general area.”
Forrester also said the deal took a little longer to execute because it was an assumption of an FHA loan. “The terms were 35 years at 4%. It just takes longer when it's an FHA loan,” he says.
The community is located convenient to Interstate 10 and State Route 60, providing residents access to the entire Phoenix area. Esteban Park is less than five miles from Phoenix Sky Harbor International Airport and six miles from South Mountain. Top employers in the immediate area include Southwest Airlines, Phoenix Sky Harbor International Airport, Arizona Grand Resort and Honeywell Aerospace.
Forrester says the buyer will keep the same management company has no major plans for upgrades.
At 6.4 percent in the third quarter, Phoenix metro vacancy was down 20 basis points from one year ago. Operators advanced rents 2.6 percent during the last four quarters to $837 per month.
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