Ponderosa Ranch in Tempe.
Newmark completes $275.75M, 4-property deal
Newmark announced the $68.5 million sale of Ponderosa Ranch, a 272-unit, value-add multifamily community in Tempe, Arizona. Newmark Executive Managing Director Brad Goff and Senior Managing Directors Brett Polachek, and Chris Canter represented the seller, KKR, in the sale to an undisclosed buyer. Ponderosa Ranch was the last property to close of an 864-unit, four-property portfolio that also included Omnia on 8th and Omnia McClintock in Tempe and Palm Trails in Chandler for a total consideration of $275,750,000.
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“We are pleased to complete the disposition of this portfolio on behalf of KKR,” said Goff. “Each property offers proximity to some of the city’s most popular destinations and activities and provides easy access to several major freeways while offering the opportunity for value-add upgrades, allowing new ownership to capitalize on the Phoenix area’s remarkable rent growth.”
Ponderosa Ranch is a 272-unit, garden-style multifamily community originally built in 1983. The property features a mix of one- and two- bedroom units with an average unit size of 706 square feet. Located at 4839 S Darrow Drive in South Tempe, Ponderosa Ranch is adjacent to both the I-10 and US-60 freeways and less than a 10-minute drive to Arizona State University and Sky Harbor International Airport. The location is surrounded by thousands of high-paying jobs and is walking distance to shopping and entertainment amenities at Arizona Mills Mall.
Investor appetite for U.S. multifamily assets surged during the second quarter of 2022 with $86.3 billion in sales volume, according to Newmark Research. This represented a 42.4% year-over-year increase, as well as the third-largest quarterly sum in history. Volume during the first half of 2022 accelerated 53.1% compared with the first half of 2021. This uptick in activity was in part due to buyers and sellers deliberately transacting ahead of impending FOMC rate hikes and the mid-term elections later in the year.