Odyssey Properties Group, a multifamily investment sponsor and private equity real estate firm based in Los Angeles, has acquired Nola on 50th, a 155-unit multifamily community located in the Arcadia submarket of Phoenix, Arizona, for $37.25 million.
Nola on 50th, which Odyssey will be rebranding as Parq on 50th, is the firms third acquisition in Arizona since entering the market in late 2020. ABI Multifamily’s Phoenix-based Institutional Apartment Group – Alon Shnitzer, Eddie Chang, Rue Bax, and Doug Lazovick represented the buyer and seller in this transaction.
“Despite the recent shifts in the market that have prompted sponsors to reevaluate, our team identified the potential of securing this strong value-add opportunity in one of the most supply-constrained and sought-after rental markets in the nation,” says Derek Graham, Principal and Founder at Odyssey Properties Group. “Drawing on our meticulous process, collaborative approach, and existing relationships in the Phoenix market, we were able to secure the asset at a favorable price for all parties involved.”
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Graham notes that the Phoenix market, which saw population increases of more than 2.5 times the national average over the past decade, directly aligns with Odyssey’s investment strategy, targeting exceptional submarkets in locations with strong job growth, favorable supply and demand conditions, and a superior quality of life.
“Overall, commercial growth and emerging industry clusters are shaping the economic landscape in Phoenix and diversifying the region’s burgeoning employment base,” continues Graham. “Already a top-performing employment market, the region’s continued job and population growth is further bolstered by recent large-scale industrial and manufacturing developments, including Taiwan Semiconductor Manufacturing Co.’s $12 billion chip manufacturing plant and Intel’s $20 billion expansion project containing two new leading-edge chip factories. Collectively, these projects will bring 5,000 high-tech, high-wage jobs to the region by 2024.”
According to Graham, Odyssey is also confident in the market’s resilience. Throughout the economic downturn due to the pandemic, the Phoenix multifamily market remained one of the strongest in the country, with rents now up 48.84% over pre-COVID levels and occupancy improving to 95.9%. Recognizing the resilience of this market early on, Odyssey acquired their first two assets in the region, Parq at East Arcadia in December of 2020 and Parq on 5th in January of 2021.
Daniel Diaz, Director of Acquisitions at Odyssey, notes that Parq on 50th is located in one of the most highly sought-after residential communities in the Greater Phoenix region, Arcadia—where Odyssey currently owns the 181-unit property, Parq at East Arcadia. The submarket boasts some of the most expensive homes in the state of Arizona—with median single-family home values in excess of $1.25 million, according to Redfin. Further, the community is just one mile from Scottsdale, which continues to be recognized nationwide as one of the top markets for business performance, job growth, livability, and friendly culture.
“For many people seeking the quality of life and community amenities offered by this region, renting an apartment is the only viable option,” Diaz explains. “With 30-year mortgage rates on the rise and median monthly mortgage payments in Arcadia hovering above $5,600, the need for high-quality multifamily housing, like Parq on 50th, will remain strong for the foreseeable future.”
According to Diaz, previous ownership of the community renovated 52% of unit interiors to a luxury scope, allowing the Odyssey team to draw upon decades of experience in value-add renovations and firsthand experience of current market demands to upgrade the remaining 48% of units and position the asset as a leader among surrounding properties.
“Parq on 50th presents the opportunity to meet the underserved need for highly upgraded housing with a luxury feel at an attainable rental rate,” continues Diaz. “Along with the interior renovations, we plan to increase value through the addition of amenities including Smart Home technology packages and the implementation of property-wide bulk cable/internet service and valet trash service. Further, some of the unique, single-story casita-style units at the community will feature newly extended private yards or patios, making these apartment homes feel more like single-family homes.”
Positioned within the prestigious Arcadia neighborhood, residents enjoy a premium central location with employment, retail, entertainment, and dining options, all within a five-minute drive. The property is located just two miles south of the Camelback Corridor, one of the largest employment centers in Metro Phoenix and home to hundreds of companies employing more than 50,000 white-collar personnel. The prime location offers residents direct access to all areas of the Greater Phoenix metro by way of Interstate 1-, Loop 202, and State Route 51.
Constructed in 1979, Parq on 50th is comprised of twelve buildings on 5.6 acres of land. The unit mix offers a mix of studios, one-, and two-bedroom units. Existing amenities include a pool and spa, two laundry facilities, fitness center, grilling station, and dog park.
Parq on 50th is located at 5008 E. Thomas Road, Phoenix, Arizona.
