Institutional Property Advisors Brokers $118.25 Million Luxury Multifamily Asset Sale in Phoenix

PHOENIX, ARIZONA – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Arboretum at South Mountain, a 312-unit multifamily asset in the Ahwatukee Foothills Village of Phoenix, Arizona. The property sold for $118.25 million, which equates to $379,006 per unit.

“The asset has a market-leading location that combines proximity to some of Arizona’s most prolific employment corridors with the desirability of a suburban enclave where the average single-family home price exceeds $558,000, and average annual household income is $128,300,” said IPA executive managing director Cliff David.

“The Ahwatukee submarket is bolstered by ultra-high barriers to entry, highlighted by the construction of only two 100-plus unit apartment projects in the past 20 years.” David and IPA executive managing director Steve Gebing represented the seller, Khosro Khaloghli, and procured the buyer, Sares Regis Multifamily Value-Add Fund IV. Sares Regis acquired Arboretum at South Mountain as its first investment in the firm’s newly formed fourth Fund. New ownership plans to execute a renovation and repositioning of Arboretum at South Mountain with unit cosmetic enhancements and common area upgrades and expansion; budgeting just over $31,000 per unit.

“Arboretum at South Mountain gives the buyer a clearly defined value-add strategy achievable by renovating the apartment interiors to a high-end finish level to meet demand from one of the most discerning resident profiles in our local market,” added Gebing.

Located along Interstate 10, Arboretum provides immediate access to West Chandler Corridor’s over 29,000 employees and 640 businesses, including Intel, Verizon Wireless, Avnet, and Honeywell. Nearby Price Corridor is home to another 44,700 employees with Fortune 1000 companies including Northrop Grumman, General Motors, UnitedHealth Group, Microchip Technologies, and CVS Health. There is over 14.2 million square feet of retail and dining space within a five-mile radius, led by regional hotspots like Phoenix Premium Outlets and Chandler Fashion Center.

Completed in 1999 on 12.5 acres, the 15-building, controlled-access community has a resort-inspired swimming pool and freestanding fitness center with pool views. Apartments feature nine-foot ceilings, full-size washers and dryers, and private patios or balconies. The average unit size 863 is square feet.



Larsen Baker Sells Centre East Building to Camp Bow Wow

TUCSON, ARIZONA –Larsen Baker recently sold 7810 E Broadway Blvd. Tucson, AZ, a freestanding office building at Centre East to Lucy & Co. Inc., dba Camp Bow Wow. The property sold for $690,400 ($100 PSF).

Camp Bow Wow is franchise for dog day care and boarding center offering training and grooming services. Camp Bow Wow has a proven track record with more than 20 years of experience and over 190 units in the U.S. and Canada and dozens more in development. With that many locations from coast to coast and in every major region of the country, we’ve learned a few things about the best way to select a site for your new Camp Bow Wow franchise.

Isaac Figueroa with Larsen Baker represented the seller, Centre East Center, LLC, an affiliate of Larsen Baker. Brian Harpel with Velocity Retail Group represented the buyer.

Figueroa should be reached at 520-296-0200 ext 218 for more information and Harpel is at 520.721.7999.

To learn more see RED Comp #9597.



CBRE: 2021 U.S. Investment Volume Hits Record $746 Billion

Phoenix was the sixth largest investment market with $29 billion in 2021, up 137 percent from the prior year. The region ranked No. 4 in industrial investment growth, which climbed 127 percent to $6.23 billion, and No. 2 in retail investment growth at 218 percent to $2.46 billion. While multifamily and industrial investments lead other specialties, office volume nationwide surged 73 percent to $50 billion from COVID-suppressed levels in Q4 2020.

Executive Summary

  • Total U.S. commercial real estate investment volume of $296 billion in Q4 2021 brought the full-year total to $746 billion, both record levels.
  • Multifamily led all sectors for investment volume in Q4 ($136 billion) and for the year ($315 billion).
  • Although Los Angeles and New York had the highest levels of investment in 2021, Sun Belt markets had the strongest year-over-year growth rates, including Las Vegas (232%), Houston (191%) and South Florida (179%).
  • Private buyers accounted for the most Q4 investment volume ($143 billion), while REITs/public companies had the highest year-over-year growth rate of 153% to $35 billion.
  • Cross-border investment in the U.S. increased by 115% year-over-year to $29 billion in Q4. Foreign capital accounted for $56 billion or 7.5% of total investment volume in 2021.
  • Canada was the largest source of foreign capital in 2021 with $21 billion, followed by Singapore with $15 billion.

To read the full report click here.