PHOENIX—Sonoma Valley LLC of Scottsdale purchased Indian Wells,a 176-unit class B multifamily complex in Apache Junction, from CSFB 2004-C5 Apache Apartments, LLC a subsidiary of LNR partners of Miami Beach. The asset is located at 975 S. Royal Palm Rd. and sold for $9.66 million, or $54.886 per unit.
Bill Hahn, Jeffrey Sherman, and Trevor Koskovich, senior vice presidents with Colliers International's HSK Multifamily Southwest Team, represented both buyer and seller.
The complex was developed in 2001 under the Federal Low Income Housing Tax Credit Program. A foreclosure led to the removal of rent restrictions, elimination of compliance requirements for operating the property, and ultimately the late 2014 sale.
Koskovich tells GlobeSt.com, ”Although the property is in Pinal county, Apache Junction is still considered a suburb of Phoenix. There is not an abundance of apartments there; many were developed as low income housing and still have deed restrictions. This transaction was a great repositioning play. The buyer plans to improve the tenant profile and rebrand this property to a best-in class in Apache Junction.”
Situated on 9.9 acres at the base of the Superstition Mountains, the apartments are equally divided into two- and three-bedroom units within 11 two-story buildings. All have side-by-side washer/dryers, walk-in closets, private patios/balconies, microwave ovens and dishwashers. A separate rental office is located on the property and boasts wide frontage along Royal Palm Road.
Common amenities include pool, spa, fitness center, basketball court, clubhouse, two playgrounds, outdoor barbeques, picnic area, and 182 covered parking spaces plus 173 uncovered spaces.
Indian Wells is positioned along Old West Highway, a major east-west thoroughfare running through Apache Junction and into Mesa and Tempe. It is two miles north of US Route 60, giving resident's greater access to Metro Phoenix.
The community is surrounded by small commercial developments, and well as manufactured and single-family homes. A Walmart Supercenter-anchored neighborhood shopping center is located about two miles northwest, while the master-planned Gold Canyon Ranch is approximately three miles southeast. Indian Wells is within walking distance to Central Arizona College.
“This purchase enables the buyer to reposition this asset as the best market-rate apartment in Apache Junction,” added Koskovich.
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