Daybreak Gardens Apartments.
Newmark sells 2 Phoenix multifamily properties for $67M
Newmark Knight Frank announced it has arranged the sale of two multifamily properties – Daybreak Gardens Apartments and Daybreak Place Apartments – in Phoenix, Arizona for a total of $66.9 million.
Newmark’s Senior Managing Director Brett Polachek, Executive Managing Director Brad Goff and Managing Director Chris Canter represented the seller, Place Properties II & III, a long-term owner. The buyer, S2 Residential, plans to renovate the properties.
READ ALSO: 5 Arizona housing market predictions for 2021
“Both properties had been owned by the seller for several years and had been consistently managed for occupancy and well-maintained,” said Polachek. “The rental market has evolved, and tenants are willing to pay materially more for a nicely renovated unit; the buyer recognized the value in the opportunity these assets and the locations offer.”
The first property, Daybreak Gardens, is located at 5225 E. Thomas Road and is made up of 161 units. The property features a mix of studio, one- and two-bedroom apartments with large windows, built-in appliances and patio or balcony options. The second property, Daybreak Place, is located at 815 E. Bethany Home Road and totals 211 units. Property features include a pool and spa, community BBQ area and proximity to hiking trails and parks.
Both properties are situated near Loop-202 and SR-143 and proximate to the Biltmore Area, North Central Phoenix, Downtown & Midtown Phoenix and Scottsdale, giving tenants quick access to upscale shopping, retail centers, dining and outdoor recreations. Additionally, the surrounding area presents strong demographics with an average household income exceeding $100,000 and single-family home prices over $450,000 within a 1-mile radius.
Polachek, Canter and Goff have been extremely active as of late, completing more than $770 million in sales the past year with six currently in escrow, further confirming Metro Phoenix’s expected growth and quality underlying real estate fundamentals.
The Greater Phoenix multifamily segment has proven resilient in the last year due to its steady and dynamic fundamentals: population inflows, job growth and the supply/demand equilibrium in units. According to Newmark Research, vacancy rates and cap rates finished 1Q21 at 3.7% with average asking rates reaching $1,286. Units under construction totaled 16,470, and sales price per unit averaged $203,151.