Newmark announced that it has completed the sale of La Cresenta Park and Gardens, a 138,142-square-foot, 197-unit multifamily community in Tempe, Arizona for $45 million, or $228,426 per unit. Newmark Senior Managing Director Brett Polachek, Managing Director Chris Canter and Executive Managing Director Brad Goff represented the buyer, Rise48 Equity LLC, in an off-market transaction. Rise48 Equity, based in the Phoenix area, has been an active buyer in the market. The seller was Brookhill Corporation.
“The Greater Phoenix multifamily market continues to see major demand from both institutional and private investors as employment and population growth, construction activity, and rental rates all continue to rise,” said Canter.
Polachek added, “We are fortunate to have worked with Rise48 Equity over the past two years, completing two value-add transactions during that time. This deal adds to a strong portfolio and brings the company closer to its 2021 goal.”
The two-story, garden-style property, located at 1025 E Orange Street, features 17 studio units, 101 one-bedroom units, and 79 two-bedroom units. The buyer will rebrand the property as Rise at the Retreat. Community amenities include pools, barbeque/picnic areas, courtyards, club house, playground, and spacious laundry room. The property is within walking distance to Arizona State University and the Apache Boulevard & Dorsey Lane stop of the Valley Metro Light Rail.
The Greater Phoenix multifamily segment has proven resilient over the past year due to strong population and job growth. According to a report from Newmark Research, Phoenix has experienced remarkable multifamily rent growth of 10% plus over the past year. As a result, investors have flocked to the Phoenix multifamily market, with a 13.7% increase in multifamily sales volume over the prior five-year average.
Polachek, Canter and Goff have been active as of late, completing more than $800 million in sales over the past year with a few additional currently in escrow, further confirming Metro Phoenix’s continued growth and quality underlying real estate fundamentals.