October 13, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announced that it has completed the sale of Renew 3030, a 126-unit multifamily 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 seller, FPA Multifamily. The buyer was SB Real Estate Partners.
Renew 3030 is a garden apartment community comprising 5 buildings and 126 units and situated on 4.59 acres of land. Built in 1985, approximately half of the units have been renovated to include black appliances, faux wood plank flooring and updated lighting and plumbing fixtures. The property’s attractive unit mix features 18 one-bedroom/one-bath units and 108 two-bedroom/ two-bath units, with an average unit size of 773 square feet. Washers and dryers are featured in every unit.
“Renew 3030 presents an ideal value-add strategy, with approximately 50% of the property still left to renovate,” said Canter. “Continuing with 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 highly desirable Southeast Valley provides excellent access and visibility along the heavily traveled 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. Prominent nearby employers 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 numerous transportation options. It is located less than 2 miles from the US-60 Freeway and public transportation is available directly adjacent to the property. The Gilbert Road station of METRO’s Light Rail is only a two-mile drive from the property and features a park-and-ride, providing residents with yet another transportation option to Tempe, Phoenix Sky Harbor International Airport, Downtown Phoenix and beyond.
The Greater Phoenix multifamily segment has proven resilient over the past year due to strong population and job growth and a supply/demand equilibrium. According to a report from Newmark Research, Phoenix has experienced remarkable multifamily effective rent growth of 5.4% over the past year. As a result, investors have flocked to the Phoenix multifamily market, with a 13.7% increase in multifamily sales volume over the prior five-year average. With strong property metrics despite pandemic-induced challenges, and the outperformance of Sunbelt markets, Phoenix is likely to continue experiencing economic growth and will remain a prime target for multifamily investors.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.2 billion for the trailing twelve months ending June 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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