The Nines Apartments, a 244-unit complex located at Baseline and Rural roads in Tempe, sold this month for $38,500,000.
The seller, 3rd Ave Investments, is a Phoenix-based private equity firm operated by real estate investor Zev Hendeles. Since 2015, the company has acquired 15 multifamily assets in Arizona and 2,700 units with an aggregate market value of more than $275 million. The team invests in value-add properties for the benefit of its equity partners and residents.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction.
“The Nines is strategically located in the heart of Tempe, Arizona where sellers have been benefitting from the submarket’s high price– per– unit sales and compressed cap rates,” says Hudson. “Buyers plan to do light interior and exterior improvements and profit from the higher than average market rents.”
Tides Equities, LLC, an entity formed by Tides Equities out of Los Angeles, California was the buyer. Tides Equities has been rapidly expanding its Arizona portfolio since 2016.
Nines Apartments, built in 1974, comprises 244-units situated on 8.68 acres. The community is a blend of 8% studio units, 25% one-bedroom units, 62% two-bedroom units, and 5% 3-bedroom units. The property is located on the south side of Baseline Road just east of Rural Road. The property is in close proximity to major retail centers and popular restaurants like Tempe Marketplace, Arizona Mills Mall, and the Mill Avenue District which is lined with bars, boutiques, and exciting nightlife options. Additionally, Arizona State University, one of the highest enrollment universities in the country, is within minutes of the property.