Overview
Metro 8 is an 8-unit, irreplaceable, luxury-built townhome community situated in the heart of Central Phoenix within the Melrose, Uptown, and Midtown submarkets. This lively live-work-play district is known for its proximity to high-end retail, restaurants, bars, and nightlife including The Biltmore Fashion Park, Camelback Colonnade, Melrose District, Park Central, The Colony, Uptown Plaza, and The Frederick on Missouri. Metro 8 is located within the prominent Camelback Corridor of Phoenix which is one of the region’s most active commercial zones featuring a mix of retail, office space, and medical buildings, offering a diverse range of services. It is also within a 10-minute drive of the heart of Downtown Phoenix which has the highest concentration of jobs in the entire Phoenix MSA. Metro 8 is located adjacent to the Valley Metro Light Rail, providing convenient access to the Downtown employment center and entertainment districts, Tempe, and Mesa.
The asset comprises 100% three bedroom, two-and-a-half-bath townhomes with two-car garages and expansive backyard patios with pavers and astroturf. Metro 8 features top-of-market interiors with quartz countertops, quartz backsplashes, light oak cabinets with chrome hardware, wood-inspired flooring, modern farmhouse-inspired light fixtures, sliding glass doors to patio, kitchen islands, stainless steel appliances, recessed lighting, barn doors in bedrooms, double vanity master bathrooms, walk-in glass showers, large soaking tubs, and expansive walk-in closets with built-in storage.
The property is positioned for organic rent growth as submarket competitors lease their three-bedroom units for over $330/month higher than Metro 8 on average. Other income opportunities include implementing a RUBS billback system to recoup an estimated 95% of utility expenses. Installing a technology package could also generate a potential ±$85/unit month.
This is a premier opportunity to acquire a legacy asset in the build-to-rent space, which has outperformed traditional multifamily assets. The opportunity is offered at a discount to nearby sales comps which include The Hera which sold for $522,500/unit in May 2024 and Clarendon which sold for $550,000/unit in April 2024.
Investment Highlights
- Irreplaceable, urban-living, 8-unit townhome opportunity centrally located in the within the heart of Phoenix near the most vibrant live-work-play districts within the Uptown, Melrose, and Midtown submarkets
- Spacious, luxury-built, townhomes comprising 100% 3BD/2.5BA floorplans averaging 1,900 sf with attached two-car garages and large private backyards with paver patio and artificial turf
- Top-of-marketing interiors featuring quartz countertops, quartz kitchen backsplashes, light oak cabinets with black chrome hardware, wood-inspired flooring, modern farmhouse-inspired light fixtures, sliding glass doors to patio, kitchen islands, stainless steel appliances, recessed lighting, barn doors in bedrooms, double vanity master bathrooms, walk-in glass showers, large soaking tubs, and expansive walk-in closets with built-in storage
- Metro 8 offers high-end fixtures and detailing including crown molding, pull-down gooseneck faucets, modern wallpaper, tiled bathroom accent walls, textured wave shower walls, rain shower heads, and dual paned windows
- The gated townhome community offers the feeling and security of homeownership without the hassle of homeowner maintenance
- Organic rent growth opportunity as similar townhome competitors lease three-bedroom units for over $330/unit/month higher than Metro 8 on average
- Opportunity to implement RUBS billback fees to recoup an estimated 95% of utility expenses
- Installation of a Smart Home technology package could generate a potential net ±$85/unit month after technology expenses and offer tenants an additional layer of security
- Strong operational performance as the asset has maintained high occupancy while deliverable at an attractive in-place cap rate
- Positive renter profile with ±61% of the population within a three-mile radius of Metro 8 identifying as a renter versus a homeowner
- Perfectly positioned in the heart of Central Phoenix, within a short drive of the MSA’s largest employment centers, entertainment districts, and highest concentration of retail and restaurants
- Within 10-minutes of several luxury shopping and dining experiences including The Biltmore, Uptown Plaza, The Colony, Camelback Colonnade, The Frederick on Missouri, the Melrose District, and Park Central
- Nestled near the vibrant Melrose District, proximate to an abundance of popular local eateries, boutiques, bars, nightlife, and high-end retail centers
- Metro 8 is located within the prominent Camelback Corridor of Phoenix which is one of the region’s most active commercial zones featuring a mix of retail, office space, and medical buildings, offering a diverse range of services
- Within steps of the Phoenix Metro Light Rail and less than two miles from the Central and Camelback Park & Ride Station offering tenants a convenient commute to Downtown Phoenix, Tempe, and Mesa
- Located within a 10-minute drive of the heart of Downtown Phoenix which is home to the MSA’s highest concentration of jobs
- Strong submarket demographics with an average household income of nearly $80,000 within a three-mile radius of the asset and within a five-mile radius of over 336,526 jobs
- Within a 10-minute drive of Grand Canyon University, ASU’s Downtown Phoenix Campus, and UofA’s Downtown Phoenix Campus
- Proximate to some of the most largest entertainment facilities including the Chase Field, Footprint Center, The Phoenix Convention Center, The Arizona Science Center, The Heard Museum, the Phoenix Art Museum, CityScape, Roosevelt Row Arts District, and Historic Grand Avenue
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