Failed condo project re-assembled from 57 ownership groups

ABI Multifamily, a multifamily brokerage and advisory services firm, announced the sale of Southern Ridge, an apartment community platted as individual condos, located in Mesa, Ariz. The 113-unit garden-style community was originally built in 1985. Southern Ridge sold for $6,510,000, which reflects a price of $57,610 per unit. The sale is one of three significant multifamily transactions brokered by ABI Multifamily within the last week.

Southern Ridge Apartments - Mesa, Arizona

Southern Ridge Apartments – Mesa, Arizona

The buyers in the transaction, Los Alamitos, Calif.-based Aleksandar and Brankica Nadazdin, were attracted to the majority Two Bedroom/Two Bathroom unit mix, the in-place condo map, as well as the trending fundamentals in the immediate neighborhood. “This was a very difficult transaction to close as it was sold by 57 separate ownership groups. These groups had originally been investors in Deeds of Trusts through the once very active group, Right Place Properties, a local condominium developer. When Right Place Properties became insolvent, these investors were deeded ownership in the individual condominium units. These were passive investors, who overnight became landlords. When Right Place failed, there were dozens of properties around metro Phoenix like this. Partially sold, fragmented and owned by passive investors, sometimes in trusts and retirement plans. It was very difficult to reassemble them all back into the original 113 unit property. The Buyers were patient and worked through the challenges to end up with a great asset at a good price” stated John Kobierowski, Senior Managing Partner at ABI Multifamily.