sir john's apartments

PURCHASE PRICE $655,000, SALE PRICE $1.1 million

Building Description

Unit Mix:  2 BR, 1 BA

Number of Units:  14
Building Size: 11, 340 SqFt

Lot Size: 0.89
Acre Year Built: 1967

Sir Johns Community 1.jpg


  • Sought after area (85018 East Phoenix Zip Code)

  • Moderate risk – strong area, no major renovation needed.

  • Large bedrooms, appealing floor plans.

  • All units tiled throughout with ceramic tiles

  • Old roof was replaced during escrow (leveraging error by broker of previous owner, $50,000 value)

  • Significant upside potential in rent increase

  • No major renovation was performed.



  • Bring rent to at least par with submarket average ($650 at purchase)
  • Terminate property manager, recover costs
  • Apply strict screening procedures and higher security deposit requirements
  • Market to higher profile tenants especially healthcare workers in the nearby Phoenix Children Hospital




Within 3.5 years we successfully increased occupancy by 20%, increased property value by 68%, and delivered unlevered IRR of 23% to the investor.


Deal Metrics


At Purchase

Purchased August 2012
Purchase Price $655,000 (all cash)

Price per Door - $46,785
Price per SqFt - $57.76

Avg. Rent at Purchase - $600/Mo.
Occupancy Rate - 79%


At Sale

Sold in March 2016
Sale Price - $1,100,000

Rent Increased to $825/Mo. (highest)
Occupancy Increased to 95%

Unlevered IRR - 32%
Trailing 12 prior to sale, Cash-on-Cash - 13.74%