Institutional Property Advisors (IPA) a division of Marcus & Millichap (NYSE: MMI), sold West Sixth, a condo-quality 375-unit/625-bed student housing tower located just steps (less than a block) from Arizona State University (ASU) (ranked #1 in the U.S. for innovation, dedicated to accessibility and academic excellence.) in Tempe, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $123,000,000/$328,000 a unit.
According to the website west 6th tower is where Higher learning meets elevated living at West 6th, a luxury apartment community located just steps from Arizona State University and Sun Devil Stadium with studio, one-, two-, three-, and four- bedroom floor plans. Featuring a sleek and sophisticated contemporary design, elegant interior finishes and high-end appliances, the skyscraping pair of high rise towers makes West 6th the tallest and grandest residential property in the Tempe, Phoenix, and Scottsdale areas. Unparalleled floor to ceiling views showcase the best of Tempe. Within walking distance, you’ll uncover more than 40 restaurants and bars as well as trendy shopping on Mill Ave. Don’t feel like walking? Catch a train at the Light Rail Station, just a five-minute walk from your door. Enjoy a breezy ride to nearby Tempe Beach Park and Lake where you can spend a fun afternoon hanging out on the water with friends.
This is one hell of an investment buy! The property is currently 98% occupied and is already 88% pre-leased for the 2019-2020 school year (AZBIGMEDIA). The total purchase price averages out to $328,000 a unit, below the median price for similar units sold in the area. That does not include top floor penthouses or larger units that could fetch two-three times more in the open market if sold individually says realtor Juan Pesqueira with Attorney’s Realty. These are luxury apartments/student housing and word on the street is they fetch top dollar per each individual unit. With over 50,000 students at Arizona State University (ASU) who all need a crib to crash is almost a guarantee your vacancy rate will be damn near zero during the school year and very low during the summer/fall/winter break months.