Newmark: SB Real Estate Partners acquires multi-family community in Mesa, Arizona for $ 24.3 million
October 13, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announced that it has completed the sale of Renew 3030, a 126-unit multi-family community in Mesa, Arizona, for $ 24.3 million. Newmark Managing Director Chris Canter, Senior Managing Director Brett Polachek and Executive Managing Director Brad Goff represented the salesperson, FPA Multifamily. The buyer was SB Real Estate Partners.
Renew 3030 is a 5-building, 126-unit garden apartment community set on 4.59 acres of land. Built in 1985, about half of the units have been renovated to include black appliances, faux wood flooring, and updated lighting and plumbing fixtures. The property’s attractive unit mix includes 18 one-bedroom / one-bath units and 108 two-bedroom / two-bathroom units, averaging 773 square feet. Washers and dryers are present in each unit.
“Renew 3030 presents an ideal value-added strategy, with approximately 50% of the property yet to be renovated,” Canter said. “The continuation of the renovation program will allow the new owner to increase rental rates while modernizing the remaining units and gaining market share.
The property’s location in the much sought after South East Valley provides excellent access and visibility along the busy Broadway road. The community is surrounded by several employment hubs such as Falcon Field, Downtown Mesa, the Fiesta District, Price Road Technology Corridor, and downtown Tempe. There are over 150,000 jobs within a 20 minute commute. Major employers nearby include Boeing, MD Helicopters, Banner Health, GoDaddy, Orbital Sciences, City of Mesa, Mesa Community College, County of Maricopa, and Drivetime Automotive Group.
Renew 3030 offers many transportation options. It is located less than 2 miles from the US-60 Freeway, and public transportation is available right next to the property. METRO’s Gilbert Road light rail station is just a two-mile drive from the property and has a park-and-ride, providing residents with another transportation option to Tempe, Phoenix Sky Harbor International Airport, the downtown Phoenix and beyond.
Greater Phoenix’s multi-family housing segment has proven its worth over the past year due to strong population and employment growth and a supply / demand balance. According to a Newmark Research report, Phoenix has experienced remarkable growth in effective multi-family rents of 5.4% in the past year. As a result, investors flocked to the Phoenix multi-family market, with a 13.7% increase in multi-family sales volume over the previous five-year average. With solid real estate indicators despite the challenges induced by the pandemic and the outperformance of the Sunbelt markets, Phoenix should continue to experience economic growth and will remain a prime target for multi-family investors.
Newmark Group, Inc. (Nasdaq: NMRK), along with its subsidiaries (“Newmark”), is a global leader in commercial real estate, seamlessly fueling every phase of the property lifecycle. Newmark’s full suite of services and products are uniquely tailored to suit every customer, from owners to occupants, investors to founders, and startups to blue chip businesses. Combining the platform’s global reach with market intelligence in established and emerging real estate markets, Newmark provides superior service to clients across the industry. Newmark generated revenues of over $ 2.2 billion for the twelve months ending June 30, 2021. The offices owned by the Newmark company, as well as its business partners, operate from more than 160 offices with approximately 6,200 professionals worldwide. To learn more, visit nmrk.com or follow @newbrand.
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