Berkadia has announced the $16.8 million sale of a multifamily property and development parcel known as The Mark, in Tempe, Arizona.
Located at 1115 E. Lemon Street, near Loops 101 and 202, the community is within walking distance from Arizona State University (ASU), and caters to student renters.
The buyer, Nelson-Brothers of Aliso Viejo, California, is a national student housing firm that looks to acquire assets at major universities and saw the opportunity to further enhance the community and build its brand near ASU. The seller, Sundance Bay of Salt Lake City, had previously purchased the property as a distressed asset and completed a full renovation and rebranding.
Berkadia’s Vice President Dan Cheyne, Senior Managing Director Mark Forrester and Managing Director Ric Holway of the Phoenix office, as well as Managing Director – Student Housing Kevin Larimer of the Detroit office, closed the sale on November 23.
The Mark features 161 units with studio, one- and two-bedroom floor plans. Built in 1970, the property is currently 98 percent occupied and master-metered for HVAC. The Mark offers unique, renovated and retro style apartment homes featuring polished concrete floors, quartz countertops and fully renovated kitchens and baths. Community amenities include a swimming pool, sundeck, student lounge, fitness center, courtyard with barbecue grills and elevator access.
“Nelson-Brothers was attracted to the area’s rent-growth potential, as well as the asset’s strong location near ASU and directly on the Valley Metro Light Rail,” said Cheyne. “Nelson-Brothers plans to strengthen the student housing community by upgrading amenities and eventually developing and expanding onto the vacant one-acre lot that was included in the sale.”
“At a per-unit price of $104,280, the deal sets the high-water mark this year for sales of master-metered properties,” added Cheyne.
The Mark is situated near downtown Tempe and Tempe Town Lake. The top employers in the immediate area include Arizona State University, State Farm, Wells Fargo and United States Postal Service.
Vacancy in the Phoenix metro area was 5.6 percent at the end of the third quarter, 60 basis points less than last year. Average asking rents were $903 per month in September, a year-over-year increase of 6 percent.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.