By: Paul Dionne | Vizzda.com
|The Station on Central|
The Station on Central is a 414-unit “Class A” apartment complex just north of the northwest corner of Central Avenue and Indian School Road in Phoenix. The property’s seventeen 3-story residential buildings total 372,089 ft2 and were completed in 1999 on an 8.26 acre site. The property is individually metered for electricity and utilizes a Rationed Utility Billing System—or RUBS—for water, sewer and trash. RUBS is a system where utility costs are apportioned according to the square footage of the unit. The complex has 240 one bedroom units with three floor plans, 162 two bedroom units and twelve three bedroom units.
|The Station on Central Facade, Facing South|
As mentioned above, Baron and Mountain West acquired the property, then known as Empirian on Central on May 3rd, 2011 for $36.5m or $88,164 per unit with $20.0M in new debt with Great West Life & Annuity Insurance. Tuesday’s purchase price of $53m represents a 45.2% absolute rate of return or 15.0% annually, a 221.2% levered rate of return or 73.7% annually and a 81.8% cash-on-cash return or 27.2% annually, ignoring hold costs and operational proceeds.
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