Marcus & Millichap’s Institutional Property Advisors Brokers Luxury Midrise Multifamily Asset Sale in Greater Phoenix

Rhea-AI Summary

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE:MMI), has announced the sale of Glen 91, a 296-unit luxury multifamily asset in Glendale, Arizona, for $76.5 million ($258,446 per unit). The property, completed in 2023, was sold by HCW to Bridge Investment Group. Located near the Westgate Entertainment District, Glen 91 offers easy access to major employers and shopping centers. The sale highlights the strong growth and demand in Glendale's rental market, with the city having the second-highest concentration of renter households in the West Valley.

Positive

• Sale of Glen 91 for $76.5 million, indicating strong market demand
• Strategic location near major entertainment and shopping districts
• Property completed in 2023, offering modern amenities
• Glendale's high concentration of renter households suggests stable demand

Negative

• None.

Insights

Real Estate Market Analyst

The sale of Glen 91, a 296-unit multifamily asset for $76.5 million in Glendale, Arizona, highlights the strong demand for residential properties in this region. This type of transaction reflects a broader trend where suburban areas, particularly those with robust employment and entertainment options, are experiencing heightened interest from investors. The proximity to major employers like Amazon, PepsiCo and FedEx, coupled with accessible transportation corridors, makes this property significantly attractive.

For the retail investor, the key takeaway is the continued attractiveness of suburban multifamily properties in high-growth areas. The per-unit price of $258,446 suggests a premium valuation, indicating confidence in the area's rental market sustainability. Over the short term, the sale may reflect positively on Marcus & Millichap’s (NYSE: MMI) stock price due to their successful execution of high-value transactions. Long-term implications include sustained revenue growth if the firm continues to capitalize on similar opportunities in high-demand markets.

Financial Analyst

From a financial perspective, the transaction underscores the strength of Marcus & Millichap's operational capabilities in a competitive real estate market. The valuation at $76.5 million for a recently completed property is relatively robust, pointing to investor confidence in future rental income and property appreciation in Glendale. Marcus & Millichap's role in brokering this deal shows their proficiency in navigating high-stakes transactions, which could translate to higher client trust and future business.

For retail investors, appreciating the financials of such deals is crucial. The price-per-unit and the scale of the transaction provide a tangible measure of market health and Marcus & Millichap's ability to command significant deals. This transaction might boost investor sentiment towards the stock in the near term, as it showcases successful deal closure and revenue generation potential. The company’s extensive network and market penetration further enhance its growth prospects in the longer term.

GLENDALE, Ariz.--(BUSINESS WIRE)-- Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE:MMI), announced the sale of Glen 91, a 296-unit multifamily asset in Glendale, Arizona. The property sold for $76.5 million, or $258,446 per unit.

“The West Valley’s municipalities, which include Glendale, have experienced outsized growth in the post-pandemic boom and are among the Valley’s most in-demand suburban locations,” said Steve Gebing, IPA executive managing director. “Glendale has the second-highest concentration of renter households in the West Valley and is projected to maintain steady growth well into the future.” Gebing and IPA executive managing director Cliff David represented the seller, HCW, and procured the buyer, Bridge Investment Group.

Home to State Farm Stadium, Desert Diamond Arena, and Tanger Outlets, the Westgate Entertainment District is within walking distance of the property. Glen 91’s proximity to Loop 101/the Agua Fria Freeway gives residents a short commute to the Southwest Valley and Loop 303 employment corridors. Major employers in the area include Amazon, PepsiCo, FedEx, Williams Sonoma, and REI. Open-air shopping center Gateway Pavilions, Banner Estrella Medical Center, and Gateway Crossing Shopping Center are nearby.

Completed in 2023, Glen 91 has climate-controlled interior corridors, a resort-style swimming pool, hammock garden, covered parking, and attached garages. Apartments have nine-foot ceilings, laundry rooms with full-size washers and dryers, and walk-in closets with built-in shelving. The average unit size is 871 square feet.

About Institutional Property Advisors (IPA)

Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com

About Marcus & Millichap, Inc. (NYSE: MMI)

Marcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240719330230/en/

Gina Relva, VP of Public Relations

Gina.Relva@MarcusMillichap.com

Source: Marcus & Millichap, Inc.

FAQ

What was the sale price of Glen 91 in Glendale, Arizona?

Glen 91, a luxury multifamily asset in Glendale, Arizona, was sold for $76.5 million, which equates to $258,446 per unit.

Who brokered the sale of Glen 91 for Marcus & Millichap (NYSE:MMI)?

The sale was brokered by Steve Gebing and Cliff David, both executive managing directors at Institutional Property Advisors (IPA), a division of Marcus & Millichap.

What is the significance of Glendale's rental market according to the Glen 91 sale?

The sale highlights Glendale's strong rental market, with the city having the second-highest concentration of renter households in the West Valley and projected steady growth.

When was the Glen 91 property in Glendale, Arizona completed?

Glen 91 was completed in 2023, offering modern amenities such as climate-controlled interior corridors and a resort-style swimming pool.