Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Willow Creek, a 160-unit multifamily asset in Prescott, Arizona.
Sold by 3137 Willow Creek Road LLC for $58 million, or $362,500 per unit, the sale evidences the newest benchmark for Arizona’s torrid real estate market, according to Mr. Cole Johnson of the selling entity. IPA’s Steve Gebing, Cliff David and Hamid Panahi represented the seller, and procured the buyer, Next Wave Investors.
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“Prescott is one of the highest barrier-to-entry markets in Arizona, and Willow Creek is one of just three market-rate properties constructed in the city over the past 20 years,” said Gebing. “The property’s strategic position is bolstered by inspiring topography, including mountainous terrain and steep elevation.”
Willow Creek is proximate to Downtown Prescott, home to historic Whisky Row and The Prescott Elks Theater and Performing Arts Center. Dignity Health Yavapai Regional Medical Center, Embry-Riddle Aeronautical University, Mi Windows and Doors Inc., and an Ace Hardware distribution center contribute to Prescott’s growing economy. The city’s location within Northern Arizona’s extensive freeway network gives residents access to State Routes 89, 93, and 69, and reach Interstates 17 and 40, which lead to Flagstaff and Greater Phoenix.
“The area’s average single family home price, which exceeds $530,000, makes for a wide rent-vs-own affordability gap,” added David. “The average annual household income within a three-mile radius of Willow Creek is $95,300.” Completed in 2020, Willow Creek’s apartment interiors have nine-foot ceilings, custom dark wood cabinetry, and full-size washers and dryers. The average unit size is 860 square feet. Common area accommodations include a rousing leasing office and resident clubhouse, fitness center, courtyard with picnic seating and charcoal grilling stations, covered parking, and detached garages.
