PHOENIX, ARIZONA (October 5, 2022) — Northmarq’s Phoenix Investment Sales team of Trevor Koskovich, Jesse Hudson, Bill Hahn, and Ryan Boyle brokered the $30.1 million (approx. $354,118/per unit) sale of Proximity on 16th Apartments, at 7500 South 16th Street in Phoenix, Arizona. Northmarq represented the seller, Scottsdale-based Avenue North, LLC. The buyer was Bridge Founders Group, LLC from Sandy, Utah.
Proximity on 16th is an 85-unit, single-family rental community located in Phoenix’s South Mountain submarket. Built in 2021, the property includes one-, two-, and three-bedroom homes that range in size from 679 to 1,339 sq. ft. There are 60 one-story and 25 two-story units in the guard-gated community that surround a luxurious community pool and BBQ area. The luxury built units include stainless steel appliances, quartz countertops, full-size washer and dryer, walk-in closets, wood-inspired flooring and patios with private backyards. The community includes garages and covered parking spaces and electric vehicle charging stations. Proximity on 16th was 95 percent leased at the time of sale.
“With Proximity on 16th, Bridge Founders Group was able to acquire a luxury single-family rental community, a product that is in high demand in today’s market,” Koskovich explained. “Single-family rental communities continue to outperform conventional multifamily properties with higher occupancy rates and rents and lower capital and operating costs for investors.”
According to Northmarq’s Single-Family Build-to-Rent Properties Special Report (May 2022) the development of single family build-to-rent market continues to gain momentum with the builders forecasted to deliver about 60,000 single-family build-to-rent units in the U.S. in 2022, an increase of 13 percent from 2021 total completions of 53,000 units. The Phoenix area was one of the first markets to truly adopt the single-family build-to-rent model and has some of the most significant price increases with year-over-year at 25 percent. The current environment of rising mortgage rates, following several years of strong price growth of for-sale housing, will continue to drive demand for households who might prefer to own a home but find themselves priced out of the market so they gravitate to single-family, build-to-rent communities.