Jack Fingersh, in his capacity as principal for KC Venture Group sold Sierra Vista I and II for a combined $23.825m or $51,017 per unit on Friday. The 467 unit apartment complex north of the northeast corner of Priest Drive and Hardy Road in Tempe had been held by Fingersh dating back to 1995, when it was acquired in two transactions for a combined $10.1m. The all cash sales price represents a 135% rate of return, ignoring proceeds from operations.
The buyers were Michael Earl and Gregory Fowler of Newport, CA-based FPA Multifamily. While there was no debt at the time of sale, the buyers recently launched a fund—FPA Apartment Opportunity IV, LP—for the purpose of purchasing workforce multifamily housing that is either distressed or has considerable upside through renovation. The $1.2b fund raised capital as recently as May of last year when they filed for a $350m Regulation D offering.
Sierra Vista I is a 239 unit complex comprised of fifteen one and two story buildings built in 1975 and 1980 on 9.04 acres. The unit mix is 96 studio and 143 one bedroom apartments and all units are individually metered. Sierra Vista II is a 228 unit complex comprised of fifty seven two story buildings built in 1971 on 8.96 acres. The unit mix is 21 one bedroom, 174 two bedroom and 33 three bedroom apartments, all of which are master metered for water and electric.
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