Investor Revives Fractured Condos, Sells as Apartments

A condo project beaten down by the recession returns as apartments in the golden age of multifamily. (It's Rocky for people who prefer cap rates over left hooks.)

Seattle-based Goodman Real Estate recently sold the multifamily property Indigo to Belkorp Holdings for $18.1M. In 2013, Goodman purchased the property, at 16160 S 50th St in the Ahwatukee submarket, as a fractured condo development, with 17 of its 30 units previously sold, and with the infrastructure in place to build 78 more units. Goodman recognized the potential of Indigo as a rental versus for-sale project, and so pursued a buyback strategy to ‘de-fracture’ the property, JLL's John Cunningham explains.

Goodman acquired many of the previously sold units and developed the additional 78 units to transform the 108-unit property to 101 rental units and seven individually owned units. The deal makes sense for its strong fundamentals, according to JLL's Charles Steele, who repped the seller in the deal along with John. “Robust employment and population growth will be the catalyst for stronger absorption of multifamily units in the coming years,” Charles tells us.

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