22 Home SFR Investment Portfolio Phoenix AZ

Listing was updated at: 06/14/2020
Property Overview
Price/Rent PSF $ 5,100,000.00
Asset Type Multifamily
Trade Type Sale
SQ. FT. Available 38,108
Date Available 07/31/2019
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Arizona, also known as the Grand Canyon State, is the sixth largest and the 14th most populous of the 50 states. Arizona has been experiencing growth since 2010 with 7 million residents as of 2017, indicating a 9.8% population growth according to the United States Census. The composition of the state’s economy is moderately diverse; although health care, transportation, and government remain the largest sectors.

Arizona is home to many Fortune 500 & 100 companies such as Avnet Inc, Freeport-McMoRan Copper & Gold Inc., PetSmart, and Republic Services Inc to name a few. According to the Eller College of Management in the University of Arizona, the latest 30-year outlook suggests that the state will continue to outpace the nation regarding jobs, population, and real income growth.

Phoenix is the capital and most populous city in Arizona with a population of 1,626,078 people (as of 2017), making it the fifth most populous city in the country. Phoenix has experienced a recent growth rate of 9.4% from the 2010 census and is continuing to rise.

This 22 Home SFR Investment Portfolio is one of the cleanest investment portfolios on the market and is located in the greater Phoenix Arizona metropolitan area. Excellent opportunity for a buyer to take advantage of Phoenix’s growing rental market, which had a +7% Rental Growth Rate in 2018 and all signs point to continued growth in 2019. Phoenix is one of the hottest areas in the country with homes priced under $250,000 selling within days on market. The average price per home in this portfolio is $231,818. There is a significant hidden value add within this portfolio, with three of the strongest home locations having not been remodeled yet to achieve potential rents & values. It is important to note 3832 E Fairmount Ave, 8455 E Vista Dr, & 1932 E Vine Ave provide an opportunity for an investor to improve revenue with an additional value add investment into these three homes of $100K-$150K in total, which can increase total revenue by $25,000 - $35,000, yielding over a 20% additional return for those three homes alone and significantly increasing the value of each home from a retail sales point of view as well.

The remaining majority of the homes, which were all built in the early 2000s, are in excellent condition and some additional strategic investment could drive rents and yields even higher. Current owner has done a tremendous job of leasing to quality tenants, keeping costs down, and providing clean & quality homes for his residents. These homes reside in South Phoenix, providing close access to major arterial streets, freeways (I-10,51,101, & 202), and the Valley at large. This 22 Home SFR Investment Portfolio offers 100% occupied cash flowing portfolio in a thriving market that will continue to see steady rent growth as interest rates have risen, supply is diminishing, cost of ownership is outpacing demand, job growth is near 3%, and population growth nearing 200 people per day immigrating to the metro area all point to Phoenix being a strong rental growth environment.

The average vintage of homes within the portfolio is 1998. All properties throughout the portfolio are predominantly 3 to 4 bedrooms and 2 to 3 baths and a mix of 1 & 2 level homes ranging in livable square feet from about 1251/SF to 2443/SF, averaging 1732/SF. Rents throughout the portfolio are strong, averaging $1323 per month, but with the value add mentioned above and natural market rent growth in 2019, these rents should see significant growth as Phoenix continues to lead the country in rent, value, & economic growth.

Also known as the Valley of the Sun, Phoenix averages approximately 300 days of sunshine and is famous for its location within the sunniest region in the world. As of 2014, the cities top five industries were: Real Estate ($35.5B), Finance and Insurance ($18.8B), Manufacturing ($18.2B), Retail Trade ($16.6B), and Health Care ($16.6B). Since 2014, the Phoenix Market has seen a significant increase in both Biotech and large technology-based companies setting up shop here given the rising costs and lack of affordability in the traditional tech hubs on the west coast.