1ST TIME 1031 BUYER PURCHASES HIGHEST VALUE PROPERTY IN I-17 CORRIDOR
72-Unit Turn-Key Investment
2130 West Indian School Road | PHOENIX, AZ
SALES PRICE: $8,300,000
SELLER: Lili Rubin Investment Properties, LLC
BUYER: Agave at Willow Creek, LLC
PRICE PER UNIT: $115,278
PRICE PER SQ. FT.: $165.84
YEAR BUILT/RENOVATED: 1982/2019
LOT SIZE: 1.47 Acres
NET RENTABLE SQ. FT.: 50,049
FINANCING: Pinnacle Bank
FIRST LOAN AMOUNT: $6,520,000
CLOSE OF ESCROW: 09/25/2019
SELLER PROFILE | TRANSACTION GOALS
This local seller was very active in the market – buying and selling apartment product in every part of the Valley. They focus on value-add deals where high-value improvements are implemented to transform properties and often-times the entire submarket. Originally purchased in April 2018, the seller quickly completed sweeping renovations to the entire exterior as well as every interior including new kitchens, bathrooms, air conditioning units, roofs and flooring. With these renovations, the property was transformed from a “C” asset to a “B” asset with higher than average rents and extremely low vacancy. With these changes in place, neighboring properties began the repositioning process soon thereafter.
BUYER PROFILE| TRANSACTION GOALS
This was a high net worth individual who had sold a property in New Mexico and wanted to purchase something clean and simple in a growing market like Phoenix. He toured the property prior to submitting an offer and we were able to meet the seller’s expectations with short due diligence periods even though the lender would require a significant amount of extra documentation for their FNMA DUS underwriting. The property’s high absorption of new units with “B” grade finishes made this a new high selling price for the I-17 corridor.
PROCESS AND RESULTS
With an extraordinary marketing campaign we toured this asset over 50 times. Because this met the 1031 Exchange requirements of the Buyer’s investment criteria, both sides accomplished their financial goals. We were also able to use a Marcus & Millichap purchase agreement and obtain FNMA financing at 80% LTV at a 4.6% 10-year fixed rate.