VIZZDA—December 13th, 2012 — Another major
multi-family asset in the Southeast Valley changed hands this week as Nancy
Swetnam and Patricia Conahan sold Fernwood Manor Apartments for $17.525m. The
Buyer, Robert Petryk of Petwin America Corp, paid $4.825m cash for the property
and secured $12.455m in financing through a 10-year multi-family loan with
Prudential Mortgage Capital and assigned to Freddie Mac at origination.
The 252-unit complex is comprised of thirty 2-story
buildings totaling 240,203 ft2. Construction on the 11.77 acre site
South of the Southwest corner of Rural Road and US-60 was completed in 1971. It
is master-metered for utilities and is managed professionally managed by Greystar.
Property management reports 98% occupancy. The unit-mix and base rents are as
follows:
|
No. of Units
|
Beds
|
Baths
|
Average ft2
|
Base Rent
|
|
64
|
1
|
1
|
630
|
$729
|
|
88
|
2
|
1
|
942
|
$869
|
|
80
|
2
|
1
|
1016
|
$879
|
|
20
|
2
|
2
|
1016
|
$944
|
The property was acquired by an entity affiliated with the
current sellers on October 2nd, 1975 for $4.47m. Gordon Reeson paid
$250k in cash and financed the remainder with new debts of $1,918,489 and
$773,731 with First Federal Savings and Loan as well as $909,860 and $617,918,
seller carry. Following a related entity quit-claim, the property was further
encumbered with $2.75m debt with Citibank of Arizona. A subsequent related
entity transfer resulted in another $2.45m encumbrance with the current lender.
Johnson Capital issued a final loan in the original principal amount of $5.35m
on June 3rd, 2003.
The $17.525m purchase prices represents a $69,534.65 per
unit price and a ~7.8% annualized rate of return—ignoring cash flows—for the
selling entity.
By:
Paul Dionne
Director of Analytics
Vizzda.com
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