Colliers International in Greater Phoenix recently completed the sale two apartment complexes in two separate transactions. Midtown on Main Apartments, a 472-unit, class B complex in Mesa sold for $34.95 million (74,047 per unit) and Indian Wells Apartments, a 176-unit class B complex in Apache Junction sold for $9.66 milion ($54,886 per unit).
Houston-based Domain Acquisitions LLC in partnership with BH Equities LLC of Des Moines (DFA/BH Midtown LLC of Houston, Texas) purchased the Midtown on Main complex, located at 2121 West Main Street, from Bay Club Partners LLC of Beaverton, Oregon.
Built in 1985, Midtown on Main is a garden-style community with 42 three-story buildings on 18.5 acres. Within 391,178-square-feet of total living space, the unit mix is 186 one bed/one bath units (730 sf), and 286 two bed/two bath units (893 sf).
This gated community realized $4 million in capital improvements in 2006, and the buyer plans to renovate 100% of the unit interiors and significantly enhance and expand the site’s amenity package. Current amenities include a 10,000-square-foot recreation facility with indoor basketball and racquetball courts, three swimming pools, sand volleyball court, covered children’s’ play area, covered parking, and beautifully landscaped grounds with gas barbecue facilities throughout.
“The purchase of Midtown on Main is a continuation of our commitment to re-establish a sizable, strategically located multifamily portfolio in Arizona,” said Jay O’Connor, executive vice president of Domain.
The transaction was brokered by the Colliers Cooke Team, led by Cindy Cooke, senior executive vice president, and Brad Cooke, vice president.
“Midtown is an excellent value-add opportunity located in an infill urban area where Tempe and Mesa are starting to merge. One of the major components creating this merge is the recently expanded Metro Light Rail," said Cindy Cooke.
In the Indian Wells Apartments transaction, Sonoma Valley LLC of Scottsdale purchased the property at 975 South Royal Palm Road in Apache Junction, AZ from CSFB 2004-C5 Apache Apartments, LLC a subsidiary of LNR partners of Miami Beach.
The complex was developed in 2001 under the Federal Low Income Housing Tax Credit Program. A foreclosure led to the removal of rent restrictions, elimination of compliance requirements for operating the property, and ultimately the 2014 sale.
Situated on 9.9 acres at the base of the scenic Superstition Mountains, the apartments are equally divided into two- and three-bedroom units within 11 two-story buildings. All have side-by-side washer/dryers, walk-in closets, private patios/balconies, microwave ovens and dishwashers. A separate rental office is located on the property and boasts wide frontage along Royal Palm Road.
Common amenities include pool, spa, fitness center, basketball court, clubhouse, two playgrounds, outdoor barbeques, picnic area, and 182 covered parking spaces plus 173 uncovered spaces.
Bill Hahn, Jeffrey Sherman, and Trevor Koskovich, senior vice presidents with Colliers International’s HSK Multifamily Southwest Team, represented both buyer and seller in the Apache Junction transaction.
To learn more on Midtown on Main, Cindy Cooke can be reached at 602.222.5039 while Brad Cooke is at 602.222.5088. For more information on the Indian Wells Apartments deal Hahn should be called at 602.222.5105, Sherman is at 602.222.5109 and Koskovich can be called at 602.222.5145.