Peoria, Arizona – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Monroe Arms, a 20-unit apartment community located in Peoria, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $1,575,000.
Pete Te Kampe, an investment specialist in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a private investor. “The seller planned to take the equity out of this building and redeploy it into a bigger asset,” Te Kampe explained. During the listing period they were able to generate multiple offers from buyers that would have been difficult to reach without the efficiency and effectiveness of the Marcus & Millichap brokerage platform. This marked the 13th transaction Te Kampe had closed with this seller.
The buyer, a private investor and former Marcus & Millichap agent, was procured by Te Kampe. Te Kampe’s quantitative analysis of the local submarket uncovered a lack of the types of units that exist at the subject property at the under-market rent levels which existed at the time of the sale. “The buyer plans to operate the building for cash flow and take advantage of market rents once the LURA expires next year. ” Te Kampe stated. “Once the rent and income restrictions expire, the property’s rental income should increase by roughly 40% and it is difficult to locate this kind of baked-in rent upside in smaller deals.”
Monroe Arms is located at 8954 West Monroe Street in Peoria, Arizona. The property is close to Monroe Park, the Loop 101 freeway, the Peoria Center for the Arts and the Peoria Park N Ride. Within a five-minute drive of the property, shopping, dining, employment, entertainment and convenience are available at State Farm Stadium, Peoria Sports Complex, Arrowhead Towne Center, Westgate Entertainment District, Banner Boswell Medical Center, and the St. Joseph Westgate Medical Center. The 12,400-square-foot property was built in 1982 and is comprised of 16 one-bedroom/one-bathroom units and four two-bedroom/one-bathroom units.
About Marcus & Millichap
With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.