PHOENIX, AZ
(320 East McDowell Rd.)

Early Native American residents, Spanish and Mexican explorers alike all learned that the land now known as Phoenix, Arizona was hot... very hot. Called “Hoozdo” by its Native American inhabitants meaning, “the place is hot,” Phoenix maintains the highest average temperature of all the American cities. While its temperature is certainly hot, it can be said that its flair for business and culture are also hot, as Phoenix is one of the more successful high-tech business areas of the country. Sitting in the heart of the Salt River Valley in Arizona, it is America’s 5th largest city; its booming economy and pastoral desert views have made it a top choice for business and the arts.

Accredited Investors, L.L.C. provided the equity capital for the purchase of an insurance company REO from General American Life Insurance (GALI) in Phoenix, Arizona—a 35,500 square foot commercial office building at 320 East McDowell Rd. As a post-foreclosure REO, GALI could not sell the property for less than foreclosed book value, which the property was not, at that time, still worth. Accredited Investors, L.L.C. provided equity capital for the REO purchase at $1,475,000 with an effective basis including specialized financing at $1,150,000; the building was then sold thru Marcus & Millichap for $2,800,000. A reduced effective basis through creative lender financing allowed the recorded price of 1.475 to be cut to 1.15 due to the specialized financial package. This creative financing package enabled GALI to sell their property at book value and meet the necessary requirements.

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