Phoenix Area to Receive 194-Unit Condo Conversion

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Phoenix Area to Receive 194-Unit Condo Conversion April 19, 2006 By Tonie Auer, Southwest Correspondent With expectations for a 25 percent return on its investment within 18 months, Unit 194 L.L.C. purchased the Emerald Springs apartments in Mesa, Ariz., for $17 million with plans to improve the property for condo conversion. Located at 1820 W. Lindner Ave., Emerald Springs is a 194-unit apartment community built in 1979 on 7.6 acres of land. The 23-building community is 98 percent occupied and consists entirely of two-bedroom/two-and-a-half-bathroom units with monthly rents of $695. Portions of the property have views of the Dobson Ranch Golf Course. Emerald Springs has an adjacent sister property that has always been structured as condos, providing equivalent sales comp data for the condo conversion project, according to Julie Vaughn, senior vice president for Sperry Van Ness, who represented the seller, California-based Farnum Properties L.L.C. The owner declined to comment on the cost of improvements for the conversion. Vaughn said the structure will not be modified, but improvements will be made to rehabilitate the interior. Plans are for the entire rehab portion of the project to be completed within six months, so the condos can go to market as soon as possible. "There was a marketing study done, and it demonstrates that this is a fabulous market to be in," Vaughn said. "Condo conversions are heating up in the Phoenix market, and if there is a time to sell or convert, this is it. We have about 21,000 units right now. A month ago, we were at 16,000 units converting to condos."