PHOENIX—Berkadia closed the recent sale of The Springs at Gilbert Meadows Apartments, a multifamily property located at 275 W. Juniper Ave. in Gilbert. The seller was LMREC CDO II REO XIII, Inc. of Beverly Hills, and the buyer was First American Exchange Company, LLC, a qualified intermediary for RRE Bristol Holdings of Philadelphia.
Senior partner Mark Forrester, partner Ric Holway and vice president Dan Cheyne of the Phoenix office negotiated the sale of the property, which sold for $36 million. The sales price reflects a per-unit price of $78,431.
Forrester tells GlobeSt.com about the key points that sealed the deal: “There was a very significant value add opportunity to upgrade interiors and public space. The property is located in one of the best school districts in Metro Phoenix. It's located in Gilbert, which is one of the best areas of Metro Phoenix—and in downtown Gilbert with its many amenities. Lastly, the buyer could put a new loan on it. All of these factors were key to the sale.”
Phoenix apartment vacancy declined 60 basis points to six percent in 2014 as increased leasing activity exceeded the sharp rise in year-over-year deliveries. Supported by healthy demand, average asking rents advanced by 3.9% to $846 per month.
“Multifamily transactions in the Phoenix metropolitan area were elevated in 2014, which we continue to see in 2015 because of steady job gains,” says Forrester.
The Springs at Gilbert Meadows Apartments is located near Route 60 and State Routes 202 and 101. The property is approximately one mile from Gilbert Historical Museum and fewer than five miles from Golfland Sunsplash Amusement Park. The area's top employers are American Commerce Insurance, Dillard's Distribution Center, FastMed Urgent Care, Gilbert Unified School District and Banner Health.
Built in 1986, the two-story, 459-unit property features one- and two-bedroom floor plans. Unit amenities include balconies or patios, washer and dryer units, storage, mini-blinds and optional cable. Select units also include ceiling fans and walk-in closets. Community amenities include a barbeque area, covered playground, heated pool, spa, fitness and business centers, as well as racquetball and tennis courts. The property was 95 percent occupied at the time of sale.
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