The Waterfront, a 288-unit, garden-style multifamily community located in North Phoenix sold for $75.3 million to Rise48 Equity, LLC, an Arizona-based multifamily investment firm. Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle represented the seller, Los Angeles-based Pro Residential, in the sale of the community located at 11459 N. 28th Drive. Northmarq Phoenix’s Debt & Equity team of Brandon Harrington, Bryan Mummaw, Tyler Woodard, and Bryan Liu financed the acquisition with a $61,744,500 loan. The acquisition loan was a debt fund execution.
“We are excited to see Rise48 put their stamp on this asset and take advantage of the strong rental upside,” said Woodard, a Vice President with Northmarq’s Debt & Equity team. “This property is a perfect fit for their signature value-add renovation program.” With the acquisition of The Waterfront, Rise48 has added over 2,300 multifamily units in Arizona to their portfolio of properties in the first six months of 2022.
The Waterfront’s North Phoenix location puts it in an area of the Valley that has seen unprecedented job growth and major economic development, including the $12 billion Taiwan Semiconductor factory currently under construction at I-17 and the Loop 303, just 10 minutes north of the complex. A planned $1 billion redevelopment of Metrocenter Mall, located one mile south of The Waterfront, has been approved by Phoenix as part of the ongoing revitalization in the community. Redevelopment plans for the 50-year old mall include converting the 68-acre property into a residential and mixed-use village with over 2,800 multifamily units, 383,000 SF of retail and commercial space and a community park. The City is also under construction on the Valley Metro Light Rail Northwest Extension Phase II that will connect the existing light rail system to Metrocenter and include the system’s first elevated passenger station. The Northwest Phase II extension is expected to be complete by 2024.
“The sellers, who purchased the asset in 2015, were fortunate to exit Waterfront at $261,458/unit” says Hudson, a Vice President with Northmarq’s Investment Sales team. “The buyers plan on renovating interiors and repositioning the community’s exterior to increase value and tenant appeal.”
Built in 1980, The Waterfront property includes 14 three-story buildings that offer one and two bedroom, one and two bathroom units that range in size from 527 to 899 square feet. The complex was 91% leased at the time of sale.
For a full breakdown on the area’s multifamily market fundamentals review Northmarq’s Research Q12022 Phoenix Market Insights.