MG Properties has acquired NOVO Broadway, a 324-unit multifamily community in Tempe, Ariz., for $100.3 million. The seller was Evergreen Devco Inc. The transaction involved a $65.2 million Freddie Mac loan originated by Manufacturers and Traders Trust Co., according to Yardi Matrix data. Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and sourced the financing.
Completed earlier this year, the four-story property comprises studios and one- to three-bedroom floorplans ranging from 632 to 1,262 square feet. Residences feature in-unit washers and dryers, private balconies or patios, air conditioning, ceiling fans and ceilings ranging between 9 and 14 feet. Common-area amenities include a swimming pool, fitness center, barbecue pavilion, dog park and pet wash station.
Located at 711 W. Broadway Road, in an Opportunity Zone, NOVO Broadway provides direct access to Interstate 10. The 37.3-acre property is roughly 10 miles from downtown Phoenix, some 5 miles from downtown Tempe and less than 3 miles from Arizona State University. Tempe High School and Tempe St. Luke’s Hospital are within walking distance.
Per-unit prices decrease in Phoenix
IPA Executive Managing Directors Cliff David and Steve Gebing represented the Evergreen Devco., while Senior Managing Director Cameron Chalfant and Executive Managing Director Brian Eisendrath sourced the acquisition loan. Eisendrath and Chalfant were also recently involved in arranging financing for MG Properties’ $62 million acquisition of a Seattle-area asset.
Multifamily transactions in Phoenix totaled $1.3 billion in 2023’s first seven months; 22 properties have traded during the period, a recent Yardi Matrix metro report shows. The price per unit in the metro registered a slight year-over-year drop to $263,389, compared to the $280,736 figure registered during the same period in 2022. However, the value was 34 higher than the one recorded on a national level.
