Newmark Arranges $112M Sale of Multifamily Portfolio in Phoenix
After a record 2021, investor demand for multifamily has remained robust in the first quarter of 2022.
That’s according to Real Capital Analytics data analyzed by Newmark Research which says, there is $63 billion in US sales volume. Phoenix, Arizona ranked sixth among major metros in terms of sales volume with $17.5 billion in volume over the 12 months ending in the first quarter.
The sale of the two-property, 369-unit multifamily portfolio in the Phoenix area affirms the growing demand for multifamily investments. Newmark arranged the $111.75 million sale of the properties that are located in the Southeast Valley. The portfolio comprises of Omnia on 8th, a 188-unit multifamily property in Tempe, and Omnia McClintock, a 181-unit property, also in Tempe.
Newmark executive managing director Brad Goff, senior managing director Brett Polachek and managing director Chris Canter represented the seller which is a joint venture between Avanti Residential and KKR Real Estate. The buyer is Denver-based investor Jason McCool. ‘
“This portfolio generated a significant amount of activity due to the prime locations of both properties,” said Polachekvin in a press release. “New ownership will have the opportunity to complete value-add upgrades to increase rents and capitalize on the rising rent growth the Phoenix area is experiencing.”
Both properties were built between 1971 and 1984 and have a mix of studio, one- and two-bedroom units with units ranging from 680 to 750 square feet. Each property offers proximity to some of the city’s most popular destinations and activities and provides easy access to several major freeways.
The two properties are in the thriving Tempe submarket. The submarket has above-average statistics when it comes to labor pipelines, an average income for residents, median home
prices, and rent growth which is strengthened by its proximity to Arizona State University. The demand for housing, occupancy rates, as well as rents, have all increased as office markets and tech sectors evolve and intensify in these two submarkets.