Rincon Partners has sold Madison Grove, a 171-unit multifamily property in Phoenix, to Canadian investor Brass Enterprises for $51.3 million. The buyer landed a $30 million acquisition loan from CIT, now part of First Citizens Bank. Marcus & Millichap's Institutional Property Advisors brokered the $300,000-per-unit sale on behalf of Rincon, securing the buyer.
Located at 7045 N. Seventh St. in the North Central Phoenix submarket, Madison Grove is within 2 miles of State Route 51, which serves both the Camelback and Innovation employment corridors. The property sits in a high enterprise area — within 7 miles of more than 7,900 businesses spanning numerous industries including finance, health care, consumer services, high-tech manufacturing, and education.
Constructed in 1976, the garden-style Madison Grove was extensively renovated between 2013 and 2017. Improvements to the community included a complete interior redesign for the units as well as a property systems overhaul. During this period, the owner added a new fitness center and swimming pool and invested in updates to both the clubhouse and leasing office.
Floor plans for the property include a mix of studio, one-, and two-bedroom units — with two distinct variations of the one-bedroom model. Units have contemporary kitchens, dual-pane windows, and wood-style vinyl flooring. In terms of amenities, the property has grilling stations with picnic seating, a laundry facility, a firepit, a dog park, and covered parking. Madison Grove is located near the bustling social hubs of Uptown Plaza, The Shops at Town & Country, and Biltmore Fashion Park.
Phoenix Rising
The Phoenix metro is booming with investment activity, as reported by Multifamily.Loans, driven by a near-perfect storm of factors. To begin with, the area has seen a positively stunning explosion in job growth — driving housing demand for both renters and buyers. Migratory trends have been favorable as well, with an influx of new residents looking to take advantage of the area’s relatively low cost of living, low tax burden, and extensive job opportunities.
According to a second-quarter outlook from Marcus & Millichap, developers have sped up delivery schedules to meet growing demand — a move that may put some upward pressure on vacancy in the metro. However, due to astronomical demand for apartments, absorption rates will most likely keep the vacancy metric in check in the long term. In all, the synergy of these market-moving factors has led rents in the area to rise nearly 28% last year, with Class A properties leading the charge, and Class B properties not far behind.