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 (âNewmarkâ) announced that it has completed the sale of Renew 3030, a 126-unit multi-family community in Mesa, Arizona, for $ 24.3 million. Managing Director of Newmark Chris Canter, Chairman and CEO Brett Polachek and executive director general Brad goff represented the vendor, 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.
âRenew 3030 presents an ideal value-added strategy, with approximately 50% of the property yet to be renovated,â Canter said. âThe 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 report by Newmark Research, Phoenix has experienced remarkable growth in effective multi-family rent of 5.4% over 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 strong 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 (âNewmarkâ), 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 client, 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.
Discussion of forward-looking statements regarding Newmark
Statements contained in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements regarding the effects of the COVID-19 pandemic on the business, results, financial condition, liquidity and prospects of the Company, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, perhaps materially, from what is currently expected. Except as required by law, Newmark assumes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see Newmark’s Securities and Exchange Commission documents, including, but not limited to, the risk factors and the special note on Forward-looking information set out in these documents and any updates to these risk factors and the special note on forward-looking information contained in subsequent reports on Form 10-K, Form 10- Q or Form 8-K.