PHOENIX, Arizona – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Ocotillo Apartments, a 173-unit apartment complex located at 1780 West Missouri Avenue in Phoenix, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset commanded a sales price of $12,850,000 or $74,277 per unit.
Rich Butler, a Senior Vice President Investments in Marcus & Millichap’s Phoenix office as well as Sean Connolly, a multifamily specialist negotiated the sale on behalf of both the buyer and the seller.
“Ocotillo Apartments was a sold by a local apartment investor who purchased the property in 2012 in partnership with the City of Phoenix through their NSP3 program,” Butler explained. “We were able to critically analyze the impact of the LURA restrictions, aggressively price the project, broadly market the property through all relevant channels and present multiple offers to the seller who was motivated to step away from the constant City of Phoenix oversite.”
“We located the perfect first-time southern California buyer who quickly performed his due diligence and then patiently and intently navigated the shifting City of Phoenix approvals, the fluctuating Fannie Mae debt requirements, and the novel Covid-19 landscape,” Butler noted. “This non-profit company will continue to operate Ocotillo Apartments within the 22-year remaining affordable housing guidelines as his company has owned similar properties in California since 2010.” Marcus & Millichap closed Ocotillo Apartments within 98.5% of list price.
Built in 1972 and completely renovated in 2014, Ocotillo Apartments is comprised of studio, one and two-bedroom apartment homes, all of which feature updated kitchens, bathrooms, air conditioning units, energy efficient windows and doors. This affordable housing community offers many amenities including a large pool area with an expansive clubhouse, two laundry rooms, covered parking and a dedicated leasing office. Connolly commented, “The project was completely renovated in 2014 with funding through a $4,800,000 City of Phoenix NSP3 loan, which set aside 118 affordable units through a LURA contract.”
Connolly added, “Conveniently located just east of 19th Avenue and south of Bethany Home Road, Ocotillo is within walking distance to the Phoenix Metro Light Rail which becomes an invaluable benefit to residents requiring transportation flexibility.” Also within walking distance is Christown Spectrum Mall which offers retail tenants such as Walmart, Costco, Target, Ross Dress for Less, Big 5 Sporting Goods and Harkins Theatres. Less than a mile to the north is Abrazo Central Medical Center which employs over 320 doctors serving this 221-bed facility. Grand Canyon University is less than two miles to the west with over 21,000 students enrolled on campus and over 70,000 students studying online.