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Newmark Knight Frank Multifamily Represents $11.8M Sale of 92-Unit Property in Phoenix, AZ

Plaza 550 Located in Midtown Submarket, Where Jobs and Residency Have Continued to Gravitate

Phoenix, AZ (10/24/2019)

1:48 PM

Newmark Knight Frank (NKF) Multifamily announces the $11.8 million sale of Plaza 550, a 92-unit property located at 550 East Earll Drive in Phoenix. Executive Managing Director Brad Goff, Senior Managing Director Brett Polachek and Director Chris Canter represented the seller, San Diego-based ColRich Multifamily (ColRich), a private residential real estate development and investment firm, in the sale to Phoenix-based commercial real estate investment company, B&R Capital Partners.

"This transaction represents a success story for the seller and a bright opportunity for the buyer. Since acquiring the building more than eleven years ago, ColRich's property upgrades have helped an already evolving neighborhood become even more desirable," commented Goff, who led the transaction. "The value-add upside on remaining unit interiors is significant and the buyer has opportunity to contribute to the changing landscape of Midtown Phoenix."

Constructed in 1973, Plaza 550 consists of all one-bedroom units, 15 of which have undergone interior renovations to include energy efficient appliances, modern lighting, plank flooring, and upgraded kitchen and bath countertops, backsplashes and hardware.

Exceptionally well-located in central Phoenix, the property is across the street from the Phoenix Country Club, is within walking distance of a multitude of coffee shops, bars and eateries, as well as METRO Light Rail. The property is also proximate to many of the cultural venues that Phoenix has to offer, such as the Heard Museum and the Phoenix Art Museum and it is minutes from two of the largest employment corridors in the Valley of the Sun - Midtown and Downtown Phoenix as well as the Camelback Corridor.

Nearby major development projects in the Midtown submarket include Sunbelt Holding's proposed luxury apartments at Phoenix Country Club, Francis Najafi's proposed 2.3 million square-foot mixed-use project at Steele Indian School Park, and Holualoa and Plaza Company's mixed-use redevelopment of the historic Park Central Mall which includes a new 300,000 square foot medical campus occupied by Creighton University that will train over 700 medical students.

A largely overlooked corridor for older vintage properties, rental rates in the Midtown submarket have averaged 7.6 percent year-over-year growth every quarter since 2016, despite adding 1,989 units, or 12.6 percent of inventory, in the same time period. Effective rent per square foot has increased 25 percent, from $1.04 to $1.30 per square foot since 2016. Sales volume increased more than 90 percent from 2018 to over $233 million, trailing-12 months through the third quarter of 2019. The average price per unit increased almost 30 percent to $190,793 in the third quarter of 2019 from $147,559 for the same period in 2018.

About Newmark Knight Frank
Newmark Knight Frank ("NKF"), operated by Newmark Group, Inc. ("Newmark Group") (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF's investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. ("BGC") (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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Newmark Knight Frank
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