Newmark announces it has completed the sale of Tierra Santa Apartment Homes, a 274-unit, value-add multifamily community in Phoenix, Arizona for $59.6 million, or $217,518 per unit. Newmark Senior Managing Director Brett Polachek, Executive Managing Director Brad Goff and Managing Director Chris Canter have a long-term relationship with the seller, a joint venture between Western Wealth Capital and Prospect Ridge. The buyer was Tides Equities LLC.
“We are fortunate to have worked with the sellers over the past seven years, having completed five transactions during that time,” said Goff. “This partnership has been an active seller in the market, trading its multifamily portfolio with great success.”
Polachek added, “Tierra Santa is perfectly positioned for the buyer to continue a value-add program, as over 60% of its units remain in classic condition. This property has already proven its ability to continue increasing revenue via additional interior renovations.”
Built in 1985, the two-story, garden-style property, located at 4620 West McDowell Road, measures 166,412 square feet and features a mix of studio, one- and two-bedroom units. Community amenities include two pools, fitness center, covered parking, soccer field, playground and infinity water feature. Tierra Santa is conveniently located in proximity to many of the West Valley’s premiere entertainment and dining experiences, outdoor recreation activities and ever-expanding lifestyle amenities.
According to Newmark Research, 268,331 multifamily units were absorbed nationally during the third quarter of 2021, marking the highest quarterly absorption figure in history. As more workers return to the office and the cost to own single-family homes continues to rise to historic levels, rental housing is anticipated to see strong demand. The increased demand is projected to support strong levels of rent growth through the end 2022. For the 12 months ending in third quarter 2021, Phoenix experienced the highest rent growth of all major U.S. markets, with annual effective rent growth approaching 25%.
Polachek, Canter and Goff have been extremely active as of late, completing more than $850 million in sales over the past year with five currently in escrow, further confirming Metro Phoenix’s continued growth and quality underlying real estate fundamentals.