“Summit Equity Investments was active during the economic downturn in the Phoenix apartment market, having purchased multiple bank-owned properties at that time. As with all their acquisitions here, they were very successful in executing their value add strategy and were able to achieve a strong premium over their acquisition cost,” states Chang, partner at ABI.

The buyer was Tempe-based apartment developer, Avtar Verma. The purchase is Verma's first acquisition of an existing multifamily property in Phoenix; he previously developed, and currently holds, a 112-unit apartment complex in Chandler built in two phases—2003 and 2009—as well as assets throughout Texas.

In the coming months, the buyer plans to make improvements to the property, including renovating the interior units with new appliances, cabinets and countertops.

“It's been difficult to find an East Phoenix apartment community that is individually-metered for electricity, has a majority of two bedroom units and is deliverable for under $50,000 per unit. Fountain Oaks Apartments presented the buyer with such an opportunity. The buyer will now look to add value to the property and raise rents by renovating the property,” says Lazovick.

The property, located on 40^th Street just south of McDowell Road, was built in 1983. The 224-unit, all two-bedroom, two-story complex is constructed of wood frame with pitched tile roofs and sits on slightly more than 7.3 acres. Situated less than a quarter-mile north of Loop 202's 40^th St entrance, it provides residents with quick freeway access to the entire Phoenix Metro. Additional nearby amenities include the Arcadia Crossing Shopping Center with 625,000 square feet of retail shopping with tenants including Target, Costco, OfficeMax, Fry's Food and Sears. Also approximately one mile north is the Tower Plaza Shopping Center with tenants including Home Depot, Walmart and Harkins Theatres.