Ideal Capital Group has acquired Hudson on Farmer, a 171-unit boutique apartment community in Tempe, Ariz., for $96 million, which equates to $561,404 per unit.

Institutional Property Advisors, a division of Marcus & Millichap, arranged the sale on behalf of the seller, 8th & Farmer Owner, a legal entity with ties to several development firms. The brokerage firm also procured the buyer.

The property opened last year and welcomed its first residents in July. Located at 707 S. Farmer Ave., the community is near Arizona State University in downtown Tempe. The area is close to a number of major employers, such as Microsoft, State Farm, ADP, and Silicon Valley Bank.

Overall, the region and Tempe’s economy are supported by more than 620,700 working professionals throughout 16 major employment corridors within a 10-mile radius, according to a statement from Steve Gebin, managing director at IPA.

A Hotbed for Investment

Robust demographic trends and strong economic expansion are driving demand for housing, underscoring investor interest across Greater Phoenix. According to a recent report by Northmarq, multifamily sales in the first quarter of 2022 significantly outpaced investment transactions during the same period in 2021.

Sales velocity in the first quarter of this year experienced a 9% uptick compared to last year, while dollar volume was up nearly 40%. The average price per unit climbed 22% from last year's median sale value, reaching $270,000 at the end of March. Continued population growth and rent increases are expected to sustain and fuel investor appetite in the near future.