Marcus & Millichap sells Desert Willow for $20.7M
Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the $20.7 million sale of Desert Willow, a 280-unit multifamily property in Phoenix, Arizona.
Pete Te Kampe, first vice president investments in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a small group of long-term clients in a limited liability company who have been represented by Te Kampe on numerous transactions since 1998. “The seller was looking to capitalize on opportunities in other markets,” Te Kampe explained. “The Marcus & Millichap platform yielded multiple, competitive offers from cooperative agents located outside Arizona. The property was on the market for just over a month when an offer came in that the seller ultimately accepted. Even in the wake of the current global health crisis, property revenue held steady and even increased,” Te Kampe said. “The buyer plans to implement renovations that will cater to a severely underserved segment of the rental demographic in this submarket.”
Located at 2025 West Indian School Road in Phoenix, Desert Willow features a garden-style design and desert-friendly landscaping. Built in 1973, the 133,308-square-foot property consists of 128 studios, 144 one-bedroom units, four two-bedroom/one-bath units, and four two-bedroom/two-bath units. “The community has an uncrowded, open feel and the largest footprint of units of any single apartment asset in its submarket,” Te Kampe added. “Of communities comprising at least 50 units in the West Central Phoenix submarket, Desert Willow controls 30% of all submarket studio units and 14% of all one-bedroom units. At closing, there were just three vacant units.” The property was partially renovated in 2012 and underwent an extensive infrastructure replacement campaign between 2015 and 2019.