10-22-2013 09:08 PM

Tempe's Dorsey Place apartments sold for nearly $15 million


Dorsey Place in Tempe was sold for nearly $15 million.




Dorsey Place — an 84-unit apartment project near Arizona State University in Tempe that was initially built as condos — was sold to Alliance Residential and its venture partner in a nearly $15 million deal, according to a statement Tuesday by Transwestern in Phoenix.
The project is located at the southwest corner of Dorsey Lane and University Drive, less than a mile east of ASU’s main campus. It was built in 2007 as a for-sale condominium complex with a small retail component on the ground level. The original developer was only able to sell six of the units before converting the complex into apartment rentals in 2010, similar to many new condo projects around that time, such as 44 Monroe in downtown Phoenix and others in Tempe.
That next year, the entire complex was sold for $11.3 million to a joint venture between Stratford Partners Real Estate LLC and Pathfinder Partners LLC, both from San Diego, Calif., which continued the apartment conversion, according to the statement and Business Real Estate Weekly of Arizona.
“This was Stratford Partners’ first acquisition when the company formed in 2011,” said Jack Hannum, vice president of Transwestern’s multifamily division who helped represent the sellers in the recent transaction. “It acquired the building at a significant discount to replacement cost and did a fantastic job of stabilizing the asset over the last two years to significantly increase value. Stratford’s leadership saw the real potential in Dorsey Place, based on the community’s location, the quality of the property and their understanding of the Tempe multifamily market.”

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Kristena Hansen covers residential and commercial real estate.


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