Investor Picks Up Value-Add Asset for $4M

MESA, AZ-A limited liability company from Phoenix has paid $25,000 less than the $3.75-million ask to take title to the 80-unit Shadow Run Apartments. The buyer also received about $200,000 to help with repair and maintenance costs on the property.

Sperry Van Ness in Phoenix worked both sides of the transaction, with Danny Lee representing the buyer, Timmer LLC, and Eric Guina, Neil Sherman and Rue Bax on hand for the seller, Shadow Run Apartments LLC, from Southern California. The apartment complex, located on 2.7 acres at 56 N. Extension Rd. in Downtown Mesa’s redevelopment area, is 85% leased. According to Lee, a senior investment adviser with Sperry Van Ness, the new buyers plan to “clean it up and get the property moving in the proper direction,” he says, adding the seller kicked in $60,000 toward repair costs.

The property, built in 1984, features 54 one-bedroom, averaging 575 sf, and 16 two-bedroom apartments measuring, on average, 950 sf. Monthly rents for the one-bedroom units have averaged $495 while the price on two-bedroom apartments are getting $625.

Lee says Shadow Run Apartments LLC acquired the property in 2003 as part of a 1031 exchange, but sold it because of the location. “Their son and daughter-in-law were actually managing the property for the owners, but they wanted to do something else, something closer to home so they sold the property,” Lee tells GlobeSt.com. He adds that Timmer, the new owners, will manage the property.