Class B Apartments Collect $10M from Oregon Buyer

TEMPE, AZ-An investment group from Lake Oswego, OR has taken title to La Quinta Apartments, beating out three other prospective buyers with a $9.6-million bid for its first acquisition in the Valley. BNB Partners LLC acquired the 172-unit, class B complex from La Quinta Apartments LP of Montecito, CA.

“The property has a superior location in Tempe,” Cliff David, an investment broker with Marcus & Millichap Real Estate Investment Brokerage Co.’s Phoenix office, says about the 3409 S. Rural Rd. development. “And, it’s a well-maintained property with a lower density than most apartment communities. Those three things were the major attractions.”

David, teaming with Marcus & Millichap’s Ric Holway, tells GlobeSt.com that BNB Partners stood out as the best buyer because of pricing and terms, specifically a short due-diligence period.

“They saw La Quinta Apartments as a great opportunity to enter this marketplace with a stable investment,” David says. The 92%-leased La Quinta Apartments sits on 7.2 acres at the hard corner of Rural Road and Southern Avenue, one of the busiest intersections in the area.

The 33-year-old complex has 12 studio units, 70 one-bedroom, 89 two-bedroom and a single three-bedroom unit, ranging from 750 sf to 1,250 sf. Rents go from $580 to $875 per month.