Institutional Property Advisors, a division of Marcus & Millichap and based in Calabasas, Calif., recently announced that between December 2019 and January 2020 senior managing directors Steve Gebing and Cliff David completed $486 million in multifamily transactions totaling 2,406 units in and around Phoenix. The Arizona squad kicked off the year with another $200 million in closings and racked up a total of $1,876,517,677 in multifamily sales over the past 12 months.
“The multifamily investment market in Phoenix continues its dynamic run,” said Gebing. “The city’s business-friendly environment, lower expenses, and highly educated workforce keep it in a leadership position as one of the nation’s fastest-growing economies. Healthy job gains, favorable yields, and the attraction of capturing upside have been the main catalysts pumping investment capital into the apartment sector this cycle.”
The list of properties include Green Leaf Arrowhead Ranch, with 256 units in Glendale, and Liv Goodyear, with 326 units in Goodyear. In Phoenix, the acquisitions include Alta Central with 223 units, Deer Creek Village with 308 units, Mountain Park with 240 units, Parc Midtown with 306 units, and Strayhorse Arrowhead Ranch with 136 units. Rising rents have become a theme in the market, and things look to stay the course for the rest of the year.
“The Valley led the nation last year in rent growth, creating robust cash flows for owners, and this will hold buyers’ interest as we head further into the new year,” said David. “We anticipate that popular targets for private and institutional groups will be the East Valley, and value-add and opportunistic buyers will focus on submarkets that have recorded minimal supply growth this cycle such as the West Valley, Mesa, and South Phoenix.”