NEW CONSTRUCTION – WEST SIDE PHOENIX STUDIOS
HIGH PRICE PER UNIT LISTING
24-Unit New Construction Investment
2016 West Orangewood Avenue | PHOENIX, AZ
SALES PRICE: $4,120,000
SELLER: Del Pueblo Communities, LLC
BUYER: Martin & Leo Vusich
PRICE PER UNIT: $171,667
PRICE PER SQ. FT.: $245.35
YEAR BUILT: 2018
LOT SIZE: 0.78 Acres
NET RENTABLE SQ. FT.: 16,792
FINANCING: Greystone Servicing Company LLC
FIRST LOAN AMOUNT: $2,350,000
CLOSE OF ESCROW: 10/11/2019
SELLER PROFILE | TRANSACTION GOALS
This local developer specializes in infill residential development and has built over 1,000 homes and over 40 apartment projects in the Phoenix MSA. MacAllister Phoenix is one of three multifamily properties that the selling group has developed within the last tow years. Because they attempt to fit high density units with high-grade finishes, the rents are often much higher than the market. Because they are merchant developers and are constantly looking for capital to begin their next project, the seller hired us to find a buyer who would pay their price and make quick decisions.
BUYER PROFILE| TRANSACTION GOALS
This is partnership’s first purchase in the Phoenix market. They were attracted to the new construction and above market rents that management was getting at the time of the sale. The above average cap rate and proximity to the Phoenix Light Rail was something that caught the buyer’s attention and because of the multiple competitive offers, we encouraged a high probability offer with strong terms and conditions. With significant proceeds in their 1031 exchange account, they were looking to take advantage of historically low interest rates and terms especially since they would apply for a 55% LTV loan. We utilized our local MMCC agent and they were able to go to contract with a FNMA small balance loan program which was perfect for this high net worth partnership.
PROCESS AND RESULTS
Throughout the listing we showed the ability to control and maximize the marketing process by using multiple platforms and our structured email campaigns. Our goal was to find a highly motivated buyer who would be willing to pay a higher price because they could purchase a new property that would require minimal management and no short-term capital improvements. Because we were able to control the process, a minor title issue and a short lender loan moratorium were not able to disrupt the close of this transaction.