Newmark Arranges Sale of 272-Unit Tempe Multifamily Property, Completing Sale of Four-Property Portfolio

September 20, 2022 9:00 AM

Newmark[1] announces the $68.5 million sale of Ponderosa Ranch, a 272-unit, value-add multifamily community in Tempe, Arizona. Newmark Executive Managing Director Brad Goff and Senior Managing Directors Brett Polachek, and Chris Canter represented the seller, KKR, in the sale to an undisclosed buyer. Ponderosa Ranch was the last property to close of an 864-unit, four-property portfolio that also included Omnia on 8th and Omnia McClintock in Tempe and Palm Trails in Chandler for a total consideration of $275,750,000.

"We are pleased to complete the disposition of this portfolio on behalf of KKR," said Goff. "Each property offers proximity to some of the city's most popular destinations and activities and provides easy access to several major freeways while offering the opportunity for value-add upgrades, allowing new ownership to capitalize on the Phoenix area's remarkable rent growth."

Ponderosa Ranch is a 272-unit, garden-style multifamily community originally built in 1983. The property features a mix of one- and two- bedroom units with an average unit size of 706 square feet. Located at 4839 S Darrow Drive in South Tempe, Ponderosa Ranch is adjacent to both the I-10 and US-60 freeways and less than a 10-minute drive to Arizona State University and Sky Harbor International Airport. The location is surrounded by thousands of high-paying jobs and is walking distance to shopping and entertainment amenities at Arizona Mills Mall.

Investor appetite for U.S. multifamily assets surged during the second quarter of 2022 with $86.3 billion in sales volume, according to Newmark Research. This represented a 42.4% year-over-year increase, as well as the third-largest quarterly sum in history. Volume during the first half of 2022 accelerated 53.1% compared with the first half of 2021. This uptick in activity was in part due to buyers and sellers deliberately transacting ahead of impending FOMC rate hikes and the mid-term elections later in the year.

[1] Dba Newmark Knight Frank Multifamily in Arizona

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.2 billion for the twelve months ending June 30, 2022. Newmark's company-owned offices, together with its business partners, operate from approximately 170 offices with 6,500 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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