Investors Flock to Phoenix with La Cresenta Park Being the Latest Buy

The Greater Phoenix multifamily segment has proven resilient in the past year due to strong population and job growth. According to Newmark research, Phoenix has experienced strong multifamily rent growth of 10 percent-plus in the past year. As a result, investors have flocked to the Phoenix multifamily market, with a 13.7 percent increase in multifamily sales volume for the prior five-year average.

A recent example is La Cresenta Park and Gardens, a 138,142-square-foot 197-unit multifamily community in Tempe, which sold for $45 million or $228,426 per unit. Rise48 Equity LLC acquired the property in an off-market transaction and plans to rebrand the property as Rise at the Retreat.

Rise48 Equity, based in the Phoenix area, has been an active buyer in the market. Newmark’s Brett Polachek, Chris Canter and Brad Goff represented Rise48.

“We are fortunate to have worked with Rise48 Equity over the past two years, completing two value-add transactions during that time. This deal adds to a strong portfolio and brings the company closer to its 2021 goal,” says Polachek.

The seller was Brookhill Corporation.

“The Greater Phoenix multifamily market continues to see major demand from both institutional and private investors as employment and population growth, construction activity and rental rates all continue to rise,” adds Canter.

The two-story garden-style property located at 1025 E. Orange St. features 17 studio units, 101 one-bedroom units and 79 two-bedroom units. The property is within walking distance to Arizona State University, and the Apache Boulevard and Dorsey Lane stop of the Valley Metro light rail.