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8/09/22
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A two-property, 369-unit multifamily portfolio in the Southeast Valley of Phoenix, sold for $111.75 mil ($303/sf). The buyer was Denver-based Jason McCool. It was sold by a joint venture between Avanti Residential and KKR Real Estate.
The two-property multifamily portfolio comprises Omnia on 8th, containing 188 units, and Omnia McClintock, with 181 units. 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 sf to 750 sf. Each property offers proximity to some of the city’s most popular destinations and activities and provides easy access to several major freeways.
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.
Brad Goff, Brett Polachek and Chris Canter with Newmark represented the seller in the transaction.
“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.”
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 bil. Phoenix ranked sixth among major metros in terms of sales volume over the 12 months ending in the first quarter, with $17.5 bil in volume.
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