CBRE has arranged the sale of the 380-unit multifamily community The Edge on behalf of Baron Properties to Tides Equities LLC for $57.3 million.
CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of Phoenix Multifamily Institutional Properties represented the seller, Baron Properties. Brian Eisendrath and Cameron Chalfant of CBRE Debt & Structured Finance arranged financing on behalf of the buyer, Tides Equities.
Located at 15202 N. 40th Street in the North Phoenix submarket, The Edge is comprised of 16 two-story apartment buildings with 44 studios, 168 one-bedroom and 168 two-bedroom units. The community features two swimming pools and spas, a playground, 24-hour fitness center, resident clubhouse and picnic areas with gas barbecue grills. Almost all one and two-bedroom floor plans have washers and dryers and many units have oversized private patios.
“Baron Properties executed a successful renovation program to a majority of the units and positioned the property to perform very well in the North Phoenix submarket,” said Gunter. “The region’s strong market fundamentals provide an outstanding investment environment for Class B multifamily assets.”
According to CBRE Research, submarket occupancy in North Phoenix was 96.8 percent in Q2 2019. Annualized effective rent growth in the submarket was 8.2 percent, similar to the Phoenix MSA year-over-year rent growth of 8.4 percent, which ranked as the second-highest rate of all major markets in the U.S.
“The Edge was an excellent fit for our investment criteria and will complement our Phoenix portfolio,” said Sean Kia, co-founder and principal of Tides Equities. “We are very bullish on the Phoenix market and our plan is to enhance the current renovation program to add value to the community for residents and our investors.”