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Newmark Multifamily announces the $22.2 million sale of Cabana at the Pointe, a 180-unit, garden-style community located at 1829 East Morten Avenue in central Phoenix. According to Preqin, value-add multifamily housing had a massive surge in investor fundraising last year, nationally. 2018 was a record-setting year for real estate investors, with 125 percent more capital raised than in 2017.
Executive Managing Director Brad Goff, Senior Managing Director Brett Polachek and Director Chris Canter represented the Colorado-based buyer, JM Logan, LLC. Cornerstone - Deco Cabana Pointe, LLC, based in Arizona was the seller.
“Cabana at the Pointe provided investors with an exceptional opportunity to acquire value-add housing - a highly attractive segment for investors in 2018 - in a desirable infill location proximate to a concentration of high-quality finance, insurance and healthcare employment opportunities as well as exceptional entertainment and dining destinations,” commented Polachek. “JM Logan immediately recognized the asset’s potential.”
A 2019 survey of major real estate investors deemed value-add, multifamily assets as the top investment strategy for the Phoenix metro, bucking the national capital preference shift toward industrial and logistics. Top funds targeting value-add multifamily assets include a partnership between Brookfield Asset Management and Fairfield Residential ($1 billion), Chuangying Global Real Estate Select Fund (Undisclosed), Ares Management Corporation ($1 billion), and Nuveen Real Estate, a subsidy of TIAA ($550 million).
Value-add opportunities for the 1980-constructed asset include upgrading of unit interiors, last improved in 2013; upgrades to community amenities and potential development of excess land within the six-acre site.
Cabana at the Pointe is well-located with direct access to State Route 51, which provides connectivity to Loop 101, Loop 202, Interstate 17, Interstate 10, and the nearby Light Rail. The asset is centrally located between Downtown Phoenix and North Scottsdale/Deer Valley, where major employers include American Express, Mayo Clinic, Honeywell, USAA Financial Services, PetSmart headquarters, Discount Tire headquarters, Waste Management headquarters, Banner Health, St. Joseph’s Hospital, Phoenix Children’s Hospital, Wells Fargo and JP Morgan Chase.
“Phoenix continues to be a high-demand market where investors are, in some cases, reallocating proceeds from other markets. This transaction exemplifies that trend,” concluded Polachek.
Cabana at the Pointe features community amenities including a resort-style pool, outdoor fire pit, fitness center, bike storage area, two laundry facilities and a dog park. With a mix of studios, one-bedrooms and two-bedrooms and in-unit amenities that include patios/balconies, ceiling fans, walk-in closets and newer appliances, the property appeals to single occupants and families alike.
About Newmark
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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