PHOENIX, ARIZONA – Institutional Property Advisors (IPA) a division of Marcus & Millichap(NYSE: MMI), announced the sale of Mountainside, a 288-unit multifamily asset located within Mountain Park Ranch, a master-planned community at the center of Ahwatukee Foothills Village in Phoenix, Arizona.
The seller, KB Investment and Development Company, was represented by IPA executive managing directors Cliff David and Steve Gebing. Veteran developer Khosro Khaloghli, KB’s founder and CEO, entered the Phoenix market in 2015, quickly assembling a portfolio of well-located high-unit-count projects. David and Gebing also procured the buyer, TA Realty.
“Mountainside’s premier location attracted immediate interest from buyers,” said David. “Only one apartment project of 100 units or more has been built in the submarket in the past 20 years, with no new construction in the pipeline and no path to future development due to significant geographic barriers and built-out nature of the submarket.”
Built in 1996 on 14.5 acres, the low-density property has under 20 units per acre within 54 residential buildings. Mountainside residents have access to Mountain Park Ranch homeowner’s association recreation facilities, which include junior Olympic-size swimming pools and tennis courts. The average unit size is 973 square feet.
“Mountainside is supported by commanding demographics that include average and median annual household earnings of $133,600 and $99,100 respectively,” added Gebing. “This top of market income, coupled with severe supply constraints and average single-family home values in Mountain Park Ranch that exceed $600,000, are driving incredibly strong multifamily economics.”