Commercial Executive Magazine interviewed Bill Hahn and Trevor Koskovich of NorthMarq Multifamily on the recent sale of Urban 188 Apartments. The 188-unit multifamily property, located at 1601 West Camelback Road in Phoenix, Arizona, sold this month for $17 million. The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich and Jesse Hudson represented both the seller and the buyer in this transaction.
Q: Location was a major component in this deal. What other factors played into the success of this transaction?
A: The fact that the property had just undergone a complete renovation, with all new HVAC units, kitchen appliances and flooring, among other systems. Also, easy light rail access encourages a young, upwardly-mobile tenant base.
Q: Urban 188 was a turn-key asset, does this type of property appeal to most of your investors?
A: Actually, no. Most buyers active today are looking for properties where they can add value by making physical improvements or management improvements, thereby increasing revenue. This particular buyer purchased Urban 188 because he believed in the organic rent growth that would come from the location and other factors mentioned in #1 above.
Hudson also noted that the property’s proximity to the light rail will likely improve property values as it encourages redevelopment and gentrification of the surrounding areas.
Urban 188 apartments, built in 1970, comprises 188-units situated on 22.30 acres. The community is a blend of 57 percent studios units, 42 percent one-bedroom, units and 1 percent two-bedroom units. The property, located on the south side Camelback Road east of 17th Avenue, is near manufacturing and warehousing employment along Interstate 17. Urban 188 is also located along the Metro light rail line with a station located just two blocks west at the intersection of 19th Avenue and Camelback Road, providing easy access to downtown Phoenix, Tempe and Mesa. The immediate neighborhood surrounding Urban 188 comprises a mixture of single-family homes, multifamily projects, and commercial developments.
Urban 1601 Property LLC, of Phoenix, Arizona, was the buyer. 1601 W. Camelback Rd. LLC, of Las Vegas, Nevada, was the seller.