1ST TIME BUYER LOCATES PERFECT EXCHANGE PROPERTY
SOLD BY OUTSIDE BROKER
27-Unit Value-Add Investment
1225-1241 East Thomas Road | PHOENIX, AZ
SALES PRICE: $3,500,000
SELLER: Anthony Giacone
BUYER: 1225 East Thomas, LLC
PRICE PER UNIT: $129,630
PRICE PER SQ. FT.: $167.99
YEAR BUILT/RENOVATED: 1959/2015
LOT SIZE: 0.70 Acres
NET RENTABLE SQ. FT.: 20,835
FINANCING: Washington Federal Bank
FIRST LOAN AMOUNT: $1,300,000
CLOSE OF ESCROW: 09/05/2019
SELLER PROFILE | TRANSACTION GOALS
At the time of sale, this property was one of three in the Phoenix MSA that were owned by the seller. This property was purchased in 2016 and numerous minor renovations were completed during their ownership. Prior to listing with an outside broker, the seller was motivated to divest the property to use in a trade for a better located project. Less than a month following this transaction the seller purchased another apartment property in South Scottsdale as the up-leg to their 1031 exchange.
BUYER PROFILE| TRANSACTION GOALS
This out-of-state 1031 Exchange Buyer was attracted to the property because of its solid location, mostly original condition, and below average price point. After selling one of their motels in Seattle, the buyer was looking to move into a landlord friendly market and more stable property type. With their 1031 Exchange deadline approaching they needed to identify a property in the allotted time, project future capital costs through extensive inspections and budgeting, locate and interview responsible management and find a trustworthy mortgage broker.
PROCESS AND RESULTS
Tracking the market at all times, our team was able to find a property that fit the buyer’s criteria. After showing interest in multiple properties, the buyer decided on 28 on Thomas and submitted an offer very close to the list price. Because the property was listed by another firm, communication between all parties were crucial to ensuring that all escrow details such as critical dates, property tours, and site inspections were coordinated effectively. All contracts were drafted on Marcus & Millichap forms and respected third-party vendors were used so potential roadblocks could be kept to a minimum. As a result, a very smooth and quick closing was achieved.