Phoenix, Arizona — Newmark1 announces it has completed the $53 million sale and $36.02 million financing of 1408 Casitas at Palm Valley, a 168-unit, value-add multifamily community located at 1408 North Central Avenue in Avondale, Arizona.
The property traded from 29th Street Capital, a privately held multifamily investment firm based in Chicago, to SAM Residential Group, a Los Angeles-based real estate developer. Newmark Senior Managing Directors Brett Polachek and Chris Canter and Executive Managing Director Brad Goff represented the seller in the transaction. Vice Chairmen Kevin Mignogna and Charlie Haggard and Vice President Peter Griesinger of Newmark’s Debt and Structured Finance team helped secure the acquisition financing.
“1408 Casitas at Palm Valley is a unique, value-add multifamily asset strategically positioned within the valley’s rapidly expanding Southwest Industrial and Healthcare Corridors,” said Goff.
Polachek added, “In addition to the prime location, the community is perfectly positioned for a continued value-add program surrounded by an abundance of employment opportunities.”
Built in 1984, 1408 Casitas at Palm Valley offers spacious casita-style and townhome-style units in a low-density, one- and two-story community. The property features a mix of one, two- and three-bedroom units with an average unit size of 929 square feet. Unit interiors feature open-concept floor plans, large private patios and yards, faux hardwood flooring, full-size washers and dryers, outdoor storage, and skylights in every unit. Property amenities include a new fitness center, cornhole/bocce ball, fire pit, swimming pool, bark park with agility course and dog washing stations, community playground, barbeque grilling stations and outdoor resident lounge with cabanas and sunning deck.
1408 Casitas at Palm Valley is situated within the exploding Southwest Valley of Metro Phoenix and is surrounded in all directions by some of the city’s greatest amenities. Located at the closest major intersection of Litchfield Road and Van Buren Street and less than one mile from the I-10, the property is advantageously positioned less than five miles from the 101, and 303 freeways. The proximity to multiple freeways provides residents exceptional access to the entire metro and its diverse employment hubs. In addition, the new 22-mile extension of the Loop 202 has drastically reduced commute times for West Valley residents who work in the East Valley. The high commutability of this property offers residents a cost-effective housing option while providing efficient travel times for workers and students alike.
According to Newmark Research, 268,331 multifamily units were absorbed nationally during the third quarter of 2021, marking the highest quarterly absorption figure in history. As more workers return to the office and the cost to own single-family homes continues to rise to historic levels, rental housing is anticipated to see strong demand. The increased demand is projected to support strong levels of rent growth through the end 2022. For the 12 months ending in third quarter 2021, Phoenix experienced the highest rent growth of all major U.S. markets, with annual average effective rent growth of 12.3%.
Polachek, Canter and Goff have been extremely active as of late, completing more than $1.2 billion in sales over the past year with eight properties currently in escrow, further confirming Metro Phoenix’s continued growth and quality underlying real estate fundamentals.