Northmarq sells Mesa build-to-rent community for $53 million
Northmarq’s Phoenix Investment Sales team of Trevor Koskovich, Jesse Hudson, Ryan Boyle and Logan Baca brokered the $53 million (±$368,055/per unit) sale of the 144-unit Build-to-Rent Community located at 250 North Ellsworth Road in Mesa, Arizona. Northmarq represented the seller, Taylor Morrison from Scottsdale, Arizona. The buyer was Ellsworth Housing Partners, LLC from San Diego and intends to brand the community as The Logan at Ellsworth.
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Built in 2022, the Mesa Build-to-Rent Community is a 144-unit, luxury development. The private-gated smart home community provides the efficiency of renting, like a traditional multifamily asset, while providing the residents the benefits of a lower density, single-family home lifestyle. The community includes 58 one-bedroom units that are 650 sq. ft. and 87 two-bedroom units that are 995 sq. ft. The in-home features include kitchens with quartz countertops and stainless-steel appliances, wood-inspired flooring, high ceilings, dual pane windows, full size washer and dryer, walk-in closets, and maintenance-free, private backyards. The Logan at Ellsworth was built with smart home technology, including satellite television with HD and DVR, mobile phone controls, smart home touch screen panel, USB outlets, keyless entry, self-monitored security system including a doorbell camera and door and motion sensor with alarm, energy efficient with smart thermostat. Parking options included 20 detached garages, as well as 168 covered and 137 uncovered spaces. The gated community features a resort-style heated swimming pool and spa, poolside ramadas with outdoor televisions, fitness studio, event lawn and roving patrol.
“Northmarq was happy to represent Taylor Morrison in marketing their first for-rent multifamily community,” according to Koskovich. “We know that renters value these types of multifamily communities, and specifically high-income households who have increasingly turned to the rental market in recent years, as they have faced challenges looking for single-family for-sale housing.”
According to Northmarq’s Single-Family Build-to-Rent Properties Special Report (May 2022) the single-family build-to-rent market continues to gain momentum with developers delivering more than 200,000 homes that were built specifically for renters since 2017. As the housing market has become less affordable, renters who would prefer a single-family home over a traditional apartment community have driven the demand for single-family, build-to-rent communities throughout the U.S., but specifically in South and West regions where populations and businesses are growing. The build-to-rent product type continues to outperform conventional multifamily apartments due to increased functionality for residents that surpasses traditional multifamily living.