Phoenix BTR Sale Signals Continued Investor Interest in Suburban Housing

Event summary

  • Marcus & Millichap brokered the $45.85 million sale of Grandstone at Sunrise, a 140-unit build-to-rent (BTR) multifamily property in Peoria, Arizona.
  • The sale price equates to $327,500 per unit, completed in 2021.
  • The property is located near significant retail and employment centers, including the Deer Valley Corridor and I-17.
  • Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller and procured the buyer.

The big picture

The sale of Grandstone at Sunrise underscores the growing popularity of build-to-rent housing in suburban markets, particularly in the Southwest. This trend is fueled by a desire for single-family living without the responsibilities of homeownership, and the deal's $45.85 million value demonstrates continued investor appetite for this asset class. While Phoenix remains a hot market, broader economic conditions and interest rate fluctuations will ultimately dictate the pace of future BTR development and investment.

What we're watching

Market Dynamics
The continued demand for BTR properties in Phoenix suggests that lifestyle preferences driving this trend are likely to persist, but rising interest rates could temper future transaction volumes.
Valuation Risk
The $327,500 per unit price point will serve as a benchmark for future BTR transactions in the Phoenix area, and any significant deviation could signal a shift in investor sentiment.
Location Dependence
The property's proximity to major employers and retail centers highlights the importance of location in driving BTR demand, and future developments will likely prioritize similar accessibility.