Phoenix Community Changes Hands for $13M

The buyer financed the purchase with a $9.5 million Freddie Mac loan from Prudential Financial.
Ocotillo Apartments. Image courtesy of Stepp Commercial

Ocotillo Apartments, a 173-unit community in the Alhambra neighborhood of Phoenix, has changed hands for $12.9 million. Multifamily brokerage Stepp Commercial assisted the buyer, a private investor, which also assumed the outstanding balance of a $4.4 million loan previously provided by the City of Phoenix, according to Yardi Matrix data. Prudential Financial originated a $9.5 million Freddie Mac acquisition loan.

The seller, a private owner named Palmcroft Properties, acquired the asset from Wells Fargo Bank in 2012. Located on 4 acres at 1780 W. Missouri Ave., the eight-building property was completed in 1973 and renovated in 2014. The community features 118 affordable housing units with studio, one- and two-bedroom floorplans. The amenity package includes a pool, a clubhouse, outdoor grilling stations and two laundry facilities. Ocotillo Apartments is near Christown Spectrum Mall and 6 miles north of downtown Phoenix.

The brokerage team included Stepp Commercial Vice President Mark Witsken and President Robert Stepp. Last year, the company also arranged the $10.7 million disposition of Gramercy Hollywood, a 28-unit property in Hollywood, Calif.