Newmark announced it has completed the $25.2 million sale and $20 million financing of Plaza 550, a 92-unit, value-add multifamily community located at 550 E. Earll Drive in Phoenix, Arizona.
The property traded from B&R Capital to Rise48 Equity, a Phoenix-based multifamily investment firm that has been an active buyer in the market. Newmark Senior Managing Directors Chris Canter and Brett Polachek and Executive Managing Director Brad Goff represented the seller in the transaction. Executive Managing Directors Scott Snowball and Darin Stovall of Newmark’s Debt and Structured Finance team helped secure the acquisition financing.
“Located next to Phoenix Country Club, Plaza 550 offers access to all of the fun and excitement that Phoenix has to offer,” said Canter. “And with approximately two-thirds of the units remaining in classic condition, the complex offers the new owner a strong value-add opportunity.”
Originally built in 1973 and renovated in 2020, Plaza 550 is an eight-building, garden style multifamily community featuring 92 one-bedroom units with an average unit size of 600 square feet. Unit interiors feature all-electric kitchens, breakfast bars, modern stainless-steel appliances, spacious walk-in closets and washers and dryers in renovated units. Property amenities include two large pools with sun decks, barbeque and picnic areas, laundry facilities, controlled access entry and Amazon package lockers.
Plaza 550 is situated in the North Central Avenue Business District and nearby several prominent job centers including Arizona State University’s Downtown Phoenix Campus, Camelback Corridor, Chase Field, Banner University Medical Center and Sky Harbor International Airport. The location also provides convenient access to the light rail and city transportation, offering residents access to local entertainment and shopping 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 average effective rent growth of 12.3%.
Polachek, Canter and Goff have been extremely active as of late, completing more than $1.2 billion in sales over the past year with eight properties currently in escrow, further confirming Metro Phoenix’s continued growth and quality underlying real estate fundamentals.