ABI Multifamily negotiated the $10,850,000 sale of the 155-unit, Broadway Heights Apartments, located in Mesa, Ariz.
The sale turns out to $70,000-per-unit and $100.20-per-square-foot.
Originally built in 1983, the property features a mix of Studio, 1 and 2- bedroom unit types, with a weighted average unit size of approximately 700 square feet.
“It’s amazing to see the rental rate growth that this submarket has experienced within the last 3 years. I remember like it was yesterday that I sold this property to the current seller [early 2013] and average submarket rents were hovering around $0.80/SF. Fast forward to 2016, submarket average rents are approximately $1.00/SF. Rents have increased approximately 25 percent,” states Alon Shnitzer, lead broker for the transaction and Senior Managing Partner at ABI Multifamily.
Located in the Southwest Mesa Submarket, Broadway Heights is located near the border with Tempe, one mile from the light rail and a short drive to the epicenter of Mesa’s burgeoning Downtown and Fiesta Business Districts.
The property, which features significant frontage along the heavily trafficked Broadway Road, is about one mile from Mesa Community College, a little over two miles from ASU’s main Tempe campus and less than a mile from ASU’s proposed Downtown Mesa expansion location and the East Valley Institute of Technology.
“The Buyer, Thomas Bradford Rhoads & Co., has plans to reposition common areas and unit interiors which, in this strong submarket, will enhance rent growth. Southwest Mesa has witnessed nearly $500 million in public/private investment over the last several years, as well as, 2,000-plus new job announcements,” adds Shnitzer.
Broadway Heights sits on 5.47-acres of land, with 10 total buildings and a dedicated leasing center / clubhouse.
Additional property features include a business center, coffee bar, swimming pool and gazebo area.
The buyer, Thomas Bradford Rhoads & Co., focuses on acquisition, development and financing of commercial, land and multi-family residential properties in the United States and Canada.
The company has offices in Phoenix, AZ, Newport Beach, CA, Seattle, WA, and Kelowna, B.C., Canada.
The seller, Emma Capital, is a real estate investment company that specializes in the identification, financing, acquisition and operation of multi-family residential complexes, in particular in the Sunbelt area of the U.S. Headquartered in Toronto, Canada, the typical Emma Capital project involves 100+ unit class “B” apartment communities with value-add opportunities, delivering strong cash flow and long-term appreciation for investors while preserving capital.
The Phoenix-based ABI Multifamily brokerage team of Alon Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang represented both buyer and seller in this transaction.
