CBRE Closes Four Multifamily Sales Totaling $9.2 Million During First Week of May

Phoenix - CBRE announced the sale of four Phoenix-area multifamily properties during the first week of May totaling $9.2 million.

Brian Smuckler, Jeff Seaman, Derek Smigiel and Bryson Fricke with CBRE in Phoenix negotiated the following transactions:

• Tides at Scottsdale, a 24-unit mid-century modern apartment community located within walking distance of Old Town Scottsdale at 4020 N. Parkway Ave., was acquired by 5209, LLC for $3 million. CBRE’s Brian Smuckler, Jeff Seaman and Bryson Fricke represented the buyer and the seller, Tides at Scottsdale, LLC. Built in 1970 and renovated in 2017, the property offers studio and one-bedroom units ranging from 500 to 700 square feet. Tides at Scottsdale is situated in a high-demand submarket where rents have increased 6.42% year-to-date.
• Cranmer Family Trust purchased Mode at 21st Street from 4401 N 21st St, LLC for $3 million. CBRE’s Brian Smuckler and Jeff Seaman represented the seller and the buyer was represented by Victoria Miachika with Real Estate Intelligent Marketing. The 16-unit contemporary apartment community is located at 4401 N. 21st Street in the dynamic East Phoenix/Camelback Corridor. Comprised of one-, two- and three-bedroom floorplans, the property was renovated in 2018 to include premium finishes. In the first quarter of 2019, submarket rents averaged $1.35 per square foot, 18% greater than the metro Phoenix average.
• Grand Vista is a 24-unit garden-style apartment community located at 834 N. 13th Ave. in Phoenix’s Roosevelt Historic Neighborhood. CBRE’s Brian Smuckler and Jeff Seaman represented the seller, Babylon 5, LLC, and the buyer, Clear Sky Capital, Inc. The value-add asset commanded a sale price of $1.98 million of $82,500 per unit and $107 per square foot.
• CBRE’s Brian Smuckler, Jeff Seaman and Derek Smigiel represented the seller, Grand Containers, LLC, and the buyer, LL, Urban Properties, LLC, in the $1.22 million sale of Containers on Grand, the first apartment community in the country made from commercial shipping containers. Built in 2015, the community is comprised of one-bedroom, 740-square-foot units. Located in the Grand Avenue Arts District at 1128 Grand Ave. in Phoenix, the sustainably designed community is situated along the First Friday Art Walk and is nearby to many independently owned art galleries, coffee shops, boutiques and restaurants.

Demand for multifamily in the Phoenix market is outpacing new supply with a net absorption-completions ratio of 136% over the past four quarters, according to a new report from CBRE Research. Additionally, Phoenix (tied with Las Vegas) led the U.S. for annual rent growth in the first quarter of 2019, with 8 percent gains year-over-year.