Omnia on 8th, a 188-unit multifamily property in Tempe.
Newmark sells Tempe multifamily portfolio for $111.75 million
Newmark announced the $111.75 million sale of a two- property, 369-unit multifamily portfolio in the Southeast Valley of Phoenix, Arizona. Newmark Executive Managing Director Brad Goff, Senior Managing Director Brett Polachek and Managing Director Chris Canter represented the seller, a joint venture between Avanti Residential and KKR Real Estate, in the sale to a Denver-based buyer, Jason McCool.
The two-property multifamily portfolio comprises Omnia on 8th, a 188-unit multifamily property in Tempe and Omnia McClintock, a 181-unit property in Tempe. The properties were constructed between 1971 and 1984 and feature a mix of studio, one- and two- bedroom units with average unit sizes ranging from 680 to 750 square feet. Each property offers proximity to some of the city’s most popular destinations and activities and provides easy access to several major freeways.
“This portfolio generated a significant amount of activity due the prime locations of both properties,” said Polachek. “New ownership will have the opportunity to complete value-add upgrades to increase rents and capitalize on the rising rent growth the Phoenix area is experiencing.”
The two properties are situated in the thriving Tempe submarket. The submarket boasts above average statistics when it comes to labor pipelines, average income of residents, median home prices, and rent growth which is bolstered by the proximity to one of the largest universities in the nation – Arizona State University. As office markets and tech sectors evolve and intensify in these two submarkets, demand for housing, occupancy rates, and rents have all increased exponentially.
Following a record 2021, investor demand for multifamily remained robust during the first quarter of 2022 with $63 billion in U.S. sales volume, according to Real Capital Analytics data analyzed by Newmark Research. In addition to this volume signifying the largest first quarter on record, year-over-year volume accelerated 65.4%. Trailing twelve-month volume increased to $374.3 billion. Phoenix ranked sixth among major metros in terms of sales volume over the 12 months ending in the first quarter, with $17.5 billion in volume.