Tempe, Ariz. – The Nines Apartments, a 244-unit complex located at Baseline and Rural roads in Tempe, sold this month for $38,500,000.
The seller, 3rd Ave Investments, is a Phoenix-based private equity firm operated by real estate investor Zev Hendeles. Since 2015, the company has acquired 15 multifamily assets in Arizona and 2,700 units with an aggregate market value of more than $275 million. The team invests in value-add properties for the benefit of its equity partners and residents.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction.
“The Nines is strategically located in the heart of Tempe, Arizona where sellers have been benefitting from the submarket’s high price-per-unit sales and compressed cap rates,” says Hudson. “Buyers plan to do light interior and exterior improvements and profit from the higher than average market rents.”
Tides Equities, LLC, an entity formed by Tides Equities out of Los Angeles, California was the buyer. Tides Equities has been rapidly expanding its Arizona portfolio since 2016.
Nines Apartments, built in 1974, comprises 244-units situated on 8.68 acres. The community is a blend of 8% studio units, 25% one-bedroom units, 62% two-bedroom units, and 5% 3-bedroom units. The property is located on the south side of Baseline Road just east of Rural Road. The property is in close proximity to major retail centers and popular restaurants like Tempe Marketplace, Arizona Mills Mall, and the Mill Avenue District which is lined with bars, boutiques, and exciting nightlife options. Additionally, Arizona State University, one of the highest enrollment universities in the country, is within minutes of the property.
About NorthMarq Multifamily
NorthMarq Multifamily offers commercial real estate investors a personalized approach to buying and selling multifamily and manufactured housing properties by combining local market knowledge with the strength of a national platform to develop creative solutions for real estate investment opportunities. Based in Phoenix, the team has a market-leading position in multifamily property sales in the Southwest region of the U.S. and collaborates with NorthMarq Capital’s debt and equity experts nationwide to provide a full range of capital markets services.
NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through over 300 mortgage banking professionals in regional offices coast-to-coast and services a loan portfolio of more than $52 billion. In select markets, the company offers multifamily and manufactured housing investment sales through NorthMarq Multifamily. For more information, please visit www.northmarq.com.
About 3rd Ave Investments
3rd Ave Investments is a real estate investment and management firm specializing in the acquisition and re-positioning of Arizona multifamily assets through a value-add private equity fund structure. Founded in 2015 by Zev Hendeles, 3rd Ave Investments has acquired more than 2,700 apartments with an aggregate market value of more than $275 million.
3rd Ave targets poorly managed, undervalued and off-market investments, where opportunities exist to create value with an active management approach. 3rd Ave Investments is directly involved in all aspects of the acquisition, re-positioning and/or redevelopment process with a hands-on approach.
About Tides Equities
Tides Equities is a leading Commercial Real Estate Investment Company focused on investments throughout the Western United States. They specialize in well-located, Class-B and Core Plus multifamily real estate with high value-add upside. Tides Equities brings institutional grade acquisitions acumen and operational efficiency across all realms of multifamily real estate.