Northmarq’s Phoenix office completes $80.75 Million sale and financing of Colter Park

PHOENIX, ARIZONA, September 29, 2022 — Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered the $80.75 million ($210,286/unit) sale of Colter Park, a 384-unit, garden-style community located at 909 West Colter Street in Phoenix, Arizona. An entity formed by Phoenix-based 3^rd Avenue Investments was the seller and New York-based Harbor Group International, LLC was the buyer. Bryan Mummaw and Bryan Liu with Northmarq Phoenix’s Debt and Equity team financed the acquisition with a $50.5 million loan. Dewayne Huffman with Chicago Title Agency handled the escrow.

“With interior renovations on just 12 of the units, Colter Park offered an opportunity for Harbor Group to continue with the property upgrades on the remaining 372 apartments and see significant revenue growth through rental premiums after the renovations,” according to Trevor Koskovich. “Metro Phoenix continues to attract investors looking for multifamily properties to meet the needs generated by the market’s unprecedented job growth and net migration.”

Built in 1972, Colter Park comprises 256,000-sq. ft. and includes 22, two-story buildings with studio, one- and two-bedroom units that range in size from 470 to 960 sq. ft. The gated community includes swimming pools and hot tubs, clubhouse, fitness center, community laundry facility and covered parking.

3^rd Avenue Investments recently invested ±$1.0 million into capital improvements and property enhancements at Colter Park. The in-unit renovations included new vinyl plank flooring, updated nickel light fixtures and hardware, white cabinets, granite countertops, subway tile backsplashes, stainless steel appliances, stackable washer and dryer and resurfaced bathtubs and showers. Community upgrades include a new monument sign, updates to the pool area and new lounge furniture, new landscaping, grill, and playground areas. The complex was 99 percent leased at the time of sale.

Colter Park is located on 11.8 acres in Phoenix’s Uptown submarket, convenient to both downtown Phoenix’s Central Business District and Midtown, the region’s primary medical corridor. The community is less than one mile from the Camelback Corridor, one of the Valley’s most popular shopping, dining and employment districts.

At the end of the second quarter, 2022, the Phoenix multifamily market had a 5.4 percent overall vacancy rate with average rents up 18.6 percent year-over-year. Following a record-setting 2021, the investment market transaction rate was accelerated and prices surged with the median price reaching $300,000 per unit in the first half of 2022, 35 percent higher than in 2021. Click here to read the full second quarter 2022 Phoenix Multifamily Market Insights report.