In just over two weeks, one firm has closed $217M in apartment transactions around the Phoenix area.
Steve Gebing and Cliff David, senior managing directors at Marcus & Millichap subsidiary Institutional Property Managers, sold five multifamily apartment buildings between May 30 and June 15. Taken together, the properties total about 1700 units.
The firm expects “elevated investor demand” for Phoenix multifamily assets “in the coming years,” supported by more business relocation and infrastructure improvements, according to Gebing.
Here are the properties to exchange hands:
- 659-unit Onnix in Tempe, sold for $77.05M;
- 264-unit Pinnacle at Union Hills in Phoenix, sold for $47.5M;
- 240-unit Broadstone Gateway in Avondale, sold for $30.75M;
- 112-unit Village Green in Mesa, sold for $7.7M;
- 424-unit Green Leaf Promontory in Phoenix, sold for an undisclosed price.
Gebing and David say nearly all the buildings represented value-add opportunities, which are extremely attractive to Southeast region investors at this point in the cycle.
“The enhanced demand for multifamily housing in the metro is being fueled by corporate expansions and relocations from large, international companies coupled with the expected addition of an estimated 81,000 net residents this year, underpinning household formation that exceeds the national pace,” Gebing says.
Phoenix was the sixth-leading U.S. metro for net absorption in first-quarter 2017, according to commercial services firm CBRE, with 3300 units taken off the market. During that period, 1100 new apartments came to the market.