Quadrangle Village in Tempe Sold for $41.875m

By: Paul Dionne | Vizzda

Greg Merage of MIG Capital has acquired the 510-unit Quadrangle Village apartments in Tempe for $41.875m or $82,108 per door. The property, located east of the southeast corner of University Drive and Rural Road, is comprised of sixteen 3-story buildings totaling 375,660 ft² built 1987 on 14.18 acres. The property is 94% occupied and has the following unit mix:

No. of Units	Bedrooms	Bathrooms	Square Feet	Market Rent*
18	0	1	493	$642
246	1	1	643	$795
10	2	1	848	$909
236	2	2	848	$1,045

MIG Capital assumed $27.247m in existing agency debt with Freddie Mac, originally loaned on March 24^th, 2009 and maturing April 1^st, 2020, with a stipulated balance at time of sale of $25,682,244. The seller, Stanley Fimberg of FSC Realty, acquired the property in March of 2006 for $43.75m or $85,784 per door. FSC paid $6.04m in cash at that time and secured $37.71m in new debt with GMAC Commercial mortgage, comprised of a $35.19m “A” note and a $2.52m “B” note. The “A” note was refinanced on March 24^th, 2009 with the $27.247m debt being assumed by MIG Capital with sale.

Vizzda has four large multifamily sales comparables in the Tempe sub-market within the last six months, all of which priced significantly higher than the Quadrangles Village due in part to the comps being considerably newer builds. The largest of these comps in an absolute sense is the Late February 2014 sale of the Alta Ravenwood for $45.45m, while Block 1949 commanded the highest per door price of $195,555. CBRE reports net operating income for the property as $3,085,832 for an implied capitalization rate of 7.36%.  

*Per CBRE Broker Flyer, found here.