June 4, 2021 8:00 AM
Newmark announces it has arranged the sale of two multifamily properties – Daybreak Gardens Apartments and Daybreak Place Apartments – in Phoenix, Arizona for a total of $66.9 million.
Newmark’s Senior Managing Director Brett Polachek, Executive Managing Director Brad Goff and Managing Director Chris Canter represented the seller, Place Properties II & III, a long-term owner. The buyer, S2 Residential, plans to renovate the properties.
“Both properties had been owned by the seller for several years and had been consistently managed for occupancy and well-maintained,” said Polachek. “The rental market has evolved, and tenants are willing to pay materially more for a nicely renovated unit; the buyer recognized the value in the opportunity these assets and the locations offer.”
The first property, Daybreak Gardens, is located at 5225 E. Thomas Road and is made up of 161 units. The property features a mix of studio, one- and two-bedroom apartments with large windows, built-in appliances and patio or balcony options. The second property, Daybreak Place, is located at 815 E. Bethany Home Road and totals 211 units. Property features include a pool and spa, community BBQ area and proximity to hiking trails and parks.
Both properties are situated near Loop-202 and SR-143 and proximate to the Biltmore Area, North Central Phoenix, Downtown & Midtown Phoenix and Scottsdale, giving tenants quick access to upscale shopping, retail centers, dining and outdoor recreations. Additionally, the surrounding area presents strong demographics with an average household income exceeding $100,000 and single-family home prices over $450,000 within a 1-mile radius.
Polachek, Canter and Goff have been extremely active as of late, completing more than $770 million in sales the past year with six currently in escrow, further confirming Metro Phoenix’s expected growth and quality underlying real estate fundamentals.
The Greater Phoenix multifamily segment has proven resilient in the last year due to its steady and dynamic fundamentals: population inflows, job growth and the supply/demand equilibrium in units. According to Newmark Research, vacancy rates and cap rates finished 1Q21 at 3.7% with average asking rates reaching $1,286. Units under construction totaled 16,470, and sales price per unit averaged $203,151.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.