The first urban apartment project to be constructed and traded in Downtown Phoenix’s post-recession real estate upswing has sold this week in a $21.8 million deal brokered by the Phoenix office of JLL. Named Proxy 333, the project totals 118 highly amenitized urban multifamily units located in the heart of downtown’s Evans-Churchill neighborhood.
The Proxy 333 sale signals investor interest in Downtown Pheonix’s multifamily market, which as of September 27 includes 1,260 units currently under construction across six properties, according to a recent report from ABI Multifamily.
JLL Executive Vice President John Cunningham and Senior Vice President Charles Steele represented the property owners, Goodman Real Estate and Tilton Development Company. The buyer was Weidner Apartment Homes.
“Proxy is the first generation of new downtown construction to finish, lease and sell in this multifamily cycle,” said Cunningham. “Goodman Real Estate and Tilton Development Company designed and developed this property to address the burgeoning residential population in downtown, and to address the type of urban lifestyle and dynamics associated with the surrounding neighborhood.”
Built in 2016, Proxy 333 totals 69,335 square feet at 333 E. McKinley St., between Third and Fourth Streets in Downtown Phoenix. It includes 118 units ranging from 438 square feet to 878 square feet, including studios, one bedroom, two bedroom and ten ground-floor live work units complete with individual signage.
The project’s $21.8 million sale price represents an average $314 per-square-foot, or $184,745 per unit. At the time of sale, the community was approximately 45 percent occupied.
“Weidner recognized the opportunity to acquire Proxy 333 and operate the community in concert with Skyline Lofts, its existing asset located across the street,” said Steele. “The economies of owning both properties and the complementary nature of the floor plans will give the company a unique advantage in this submarket.”
With the acquisition of Proxy 333, Weidner now owns 38 properties – approaching 12,000 units – in Arizona.
Each unit at Proxy 333 includes a private patio or deck, large closets, upgraded appliances and designer interior selections complete with quartz countertops. Community amenities range from a 24-hour concierge and private fitness center to a bike garage and exclusive rooftop lounge. Additional amenities include a pool and recreation area with fire pit, game tables, bocce ball, an outdoor kitchen and TV. As a pet-friendly community, Proxy also includes an on-site dog park.
These amenities are complemented by nearby shopping, dining, arts and entertainment – some as close as the building’s first-floor retail space – as well as neighboring Arizona State University, TGEN and the Phoenix Biomedical Campus.