NorthMarq Multifamily sells Deserama Mobile Home Community
The 129-site Deserama Mobile Home Community, located at 2434 E. Main Street, in Mesa, Arizona sold this month for $7.85 million. Deserama MHC, LLC, an entity formed by Comfort Communities of El Cajon, California, was the buyer.
Don Vedeen, Trevor Koskovich, and Bill Hahn of NorthMarq Multifamily in Phoenix represented the buyer and seller in the transaction.
“Deserama is an iconic manufactured housing community located in the desirable Mesa/Apache Junction submarket,” says Vedeen, vice president-Manufactured Housing Investment Sales. “The new metro light rail extension is currently under construction and within steps of the community. The expansion will allow tenants easy access to commute to downtown Phoenix and Tempe.”
Deserama MHC, LLC, an entity formed by American Family Communities of Castle Rock, Colorado was the seller. American Family Communities owns Mobile Home Communities throughout the Midwest; this was their only asset in Arizona.
Deserama, a 55+ age-restricted community built in 1957, comprises 103 mobile home sites and 26 RV sites on 10.21 acres. It is located on the north side of Main Street east of Gilbert Road, close to many popular golf clubs such as Westgate Painted Mountain Golf Resort and Longbow Golf Club. The community is strategically located in the heart of Mesa, which is undergoing a dramatic revitalization effort via the recent completion of Mesa Aquatic Center and a $94 million Mesa Arts Center.
Marcus & Millichap sells TitleMax
Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of TitleMax Corporate Ground Lease, a 1,652-square foot net-leased property located in Phoenix, AZ, according to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $1,037,143.
Henry Kerson, an investment specialist in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a limited liability company, was also secured and represented by Kerson.
“The subject sold at list price after multiple offers were received through our exclusive listing process,” says Kerson. “Our platform sourced an out-of-state, all cash buyer seeking a 1031 exchange opportunity. We were successful moving from offer to close of escrow in just over 30 days.”
TitleMax Corporate Ground Lease is located at 5102 W Thomas Rd in Phoenix, AZ. (Add info on property’s unit mix or tenant mix, occupancy rate, amenities, recent renovations and year of construction.)
Marcus & Millichap sells office building
Marcus & Millichap announced the sale of ICE & USFS, a 41,127-square foot office property located in Mesa, Arizona.
This transaction represents the growing demand seen for General Services Administration leased property. After an intensive three-week controlled marketing campaign, The Ficke Group procured eight letters of intent from active institutions, high net worth investors, and syndicates focused on federally leased property acquisitions.
Geoff Ficke, first vice president investments, and Zack Ficke, associate in Marcus & Millichap’s Dallas office represented the seller, a limited liability company, and sourced the buyer, also a limited liability company with an impressive reputation of acquiring and financing government leased real estate. Ryan Sarbinoff, broker of record, assisted in closing this transaction.
The sale presented several challenges as the lease with the federal government and landlord also included a ground lease with Mesa’s Gateway airport. With a shorter lease term than the lender was willing to amortize their loan, the seller proactively assisted the investor with managing the ground lease extension, which took several months to complete. Despite significant rises to interest rates the investor closed on the asset and is proud to own this highly specialized enforcement base.
“As we continue to see an uptick in demand for federally-leased properties, the ICE and US Forest Service transaction in Mesa epitomized the unique attributes that continue to drive the incredible demand and activity we’re witnessing in this segment today: paramount credit, more long term commitment to the location, and robust returns for investors. The Mesa property was able to attract incredible interest for a ‘select marketing program’ given the significant tenant-improvement buildout including detention holding-cells for ICE detainees and the adjacent airplane parking ‘slip’ for the Forest Service to fulfill their evacuation and forest fire combat missions throughout the Southwest Region. As one of the only five properties of its kind, this was truly the mission-critical facility that investors are seeking today,” said Zack Fick.
To learn more about the fundamentals of Government Real Estate investing or to view a list of available properties, visit http://www.thefickegroup.net or call (972) 755-5262.
ORION represents buyer and seller in motel conversion transaction
Investment Real Estate recently sold the 66-unit short-stay motel, formerly known as Best Inn Suites, located on Van Buren Street and 36th Street for $3,300,000 ($50,000/unit, or $93/SF). The Buyer’s plans to convert the motel to apartments are already underway. The motel was 97% occupied (daily, weekly and monthly terms) at close of escrow.
Zack Mishkin of ORION represented the Buyer in this transaction. “This asset is uniquely staged for a value-add conversion back to apartments. The complex was originally constructed as an apartment community and was later converted to short-stay motel. Unlike many motel-to-apartment conversions, the Buyer will be able to find large cost savings through utilizing the already existing full-sized one bedroom layouts, reverting the current sub-metered system back to the original individually metered system and reconnecting to the building’s air conditioning duct work back to its original, existing infrastructure. The property is bookended by GateWay Community College’s newest campus just a short walk due east and the latest Chris Bianco restaurant concept, Roland’s Café, a couple miles west. The property sits just over one mile from the entrance to Sky Harbor International Airport. Van Buren is truly a special thoroughfare connecting our Urban Phoenix Downtown to the heart of Downtown Tempe, as Van Buren turns into Mill Avenue as you cross the historic Mill Avenue Bridge The aforementioned, combined with a high demand for and an exceptionally low supply of market-rate apartments along Van Buren, should provide the new operator with a fun, exciting and very successful value-add reposition,” said Mishkin.
The Seller continues to operate hotels and motels for its business, and would be willing to entertain any new hotel and motel opportunities within the Phoenix urban centers.
Joseph Dietz and Bob Farrell of ORION represented the Seller, Rudra Investment LLC. The Buyer was locally-based Risi Companies, LLC.