Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Cabana on 12th, a 252-unit multifamily asset in Phoenix, Arizona. The property sold for $54.5 million, which represents $216,270 per unit.
“Cabana on 12th is a purpose-built attainable housing apartment community that provides budget-conscious renters with housing optionality not otherwise offered by the market,” said IPA executive managing director Steve Gebing. Gebing and IPA executive managing director Cliff David represented the seller, Greenlight Communities and procured the buyer, JB Partners.
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The five-building property is located between Uptown Phoenix and Midtown Phoenix, near two of the city’s top employment corridors, Camelback and Innovation. The area gives residents access to a diverse set of industries anchored by the healthcare and biotech sectors. Nearby State Route 51/Piestewa Freeway and Valley Metro rail provide access to the Phoenix Sky Harbor International Airport area and the 44th Street Gateway hub. Constructed in 2020, Cabana on 12th has studio, one- and two-bedroom apartments with nine-foot ceilings.
Marcus & Millichap sells Midtown on 2nd in Tucson
Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Midtown on 2nd, a 42-unit apartment property located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Tucson and Phoenix offices, the asset sold for $2,800,000.
“Our team’s unique position of dedicated coverage in Phoenix and Tucson allowed us to effectively complete both parts of the 1031-exchange for the buyer, allowing him to defer capital gains and capitalizing on the cap rate arbitrage between the two markets,” said James Crawley, senior associate in Marcus & Millichap’s Tucson and Phoenix offices. “This flow of capital is part of a growing trend as we continue to see capital migration from major west coast markets into Tucson.”
Hamid Panahi, first vice president investments also in the firm’s Phoenix and Tucson office, added, “The seller had conducted an overhaul of interior and exterior enhancements, minimizing capital exposure for future ownership, while laying the groundwork for future upside with a proven out rental premium for substantially renovated interiors.”
Panahi and Crawley had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, an individual/personal trust, was also procured by Panahi and Crawley.
Midtown on 2nd is located at 3601 East 2nd Street in Midtown Tucson’s historic Miramonte neighborhood. Completed in 1962, Midtown on 2nd is a 42-unit multifamily community featuring block construction with a mix of studio and one-bedroom apartments. Community amenities include a pool and pool-deck lounge, on-site laundry, water-softening service, dog park, and photovoltaic solar panels. Large capital improvement projects since ownership include new striped parking lot, air conditioner replacement, gas line replacement, and exterior paint.
Marcus & Millichap sells Talavi Spectrum
Marcus & Millichap announced today the sale of Talavi Spectrum, a 75,636-square-foot office property located in Glendale, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $13,000,000.
“This multi-tenant office asset was put under contract immediately after listing and during the height of the pandemic,” said Tivon Moffitt, Senior Director in Marcus & Millichap’s Phoenix office. “Investor demand remains very healthy with office users in addition to other asset classes. It was a pleasure working with both Dunbar and OrbVest and we congratulate them both.”
“We continue to see new institutional and private capital investors attracted to the greater Phoenix marketplace,” added Peter Bauman, also a Senior Director in the firm’s Phoenix office. “This project is the second recent acquisition in the greater Phoenix metropolitan area completed with OrbVest and they were great to work with.”
Bauman and Moffitt had the exclusive listing to market the property on behalf of the seller, Dunbar, who had reached their investment goals for the asset and were looking to deploy capital into more assets in the market. The buyer, OrbVest, was also procured by Bauman and Moffitt and plans to continue operations and recruit quality medical operators to the asset.
“We have been looking for medical office buildings in Arizona for some time to complement our portfolio, and the Talavi building provides us with a perfect opportunity to re-establish the building as a prestigious medical office,” said Martin Freeman, OrbVest CEO.
Talavi Spectrum is located at 5701 West Talavi Boulevard in Phoenix, Arizona in a strong market with limited future development opportunities. Built in 2002 on 5.73 acres, this Class A suburban office asset was 88% occupied at the time of sale.
Marcus & Millichap sells Smoothie King Drive-Thru Shops
Marcus & Millichap announced today the sale of Smoothie King Drive-Thru Shops, a 7,142-square-foot retail property located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $1,557,000.
Mark Ruble and Chris Lind, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a private investor, was also procured by Ruble and Lind. Smoothie King Drive-Thru Shops is located at 1070 East Tucson Marketplace Boulevard in Tucson, Arizona. Built in 2013 on 1.04 acres, this shopping strip includes five suites that were 64% occupied at the time of sale with tenants Smoothie King, Bella Nails & Spa and Planet Sub.
Marcus & Millichap sells Community Partners
Marcus & Millichap announced today the sale of Community Partners, a 33,000-square-foot office property located in Phoenix, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $4,350,000.
“The buyer plans to renovate 30% of the improvements on the property and lease the improved space to beneficial industry partners, which will augment the service provision to the main tenant’s clientele,” said Pete Te Kampe, vice president investments in Marcus & Millichap’s Phoenix office. The buyer, a limited liability company, was procured by Te Kampe. The seller was represented by Steve Gonzalez, Greg Gugliemino and Marcus Muirhead of Lee & Associates.
Community Partners is located at 1515 East Osborn Road in Phoenix, Arizona. Built in 1972, the property is occupied by one tenant, Community Partners, a social service agency. The property includes 97,499 square feet of land and 34,756 square feet of improvements.
