Goldman Sachs Buys AZ Luxury Property

The 341-unit Hanover Mill Avenue was purchased from The Hanover Co. and is situated three blocks from Arizona State University, within walking distance of the Metro Light Rail.
Hanover Mill Avenue, Tempe, Ariz.

Goldman Sachs Asset Management Private Real Estate (GSAM PRE) has acquired Hanover Mill Avenue, a multifamily community in Tempe, Ariz., from The Hanover Co. This purchase marks the firms 16th investment, bringing its total to 3,948 units across the U.S.

“The Phoenix market has experienced strong population and employment growth when compared to other large Western markets, creating a major demand driver for multifamily rental product,” Joseph Sumberg, co-head of GSAM PRE, told Multi-Housing News. “Downtown Tempe is already known as a major destination due to the entertainment node of Mill Avenue. The area has benefitted from a rapid increase in office-using employment, investment in public transportation, and the continued growth of Arizona State University.”

Luxury Features

Located at 101 W. Fifth St., the 341-unit luxury property offers one- and two-bedroom floorplans ranging from 498 to 1,431 square feet. Interior features of the 2015-built Hanover Mill Avenue include espresso cabinets, stainless steel appliances, granite countertops, wood-style floors, private balcony/patios, high ceilings, accent walls, washer/dryers and spa-inspired bathrooms. According to Yardi Matrix, the asset is currently at 93.5 percent occupied as of March 2018.

The six-story community is situated three blocks from Arizona State University and within walking distance to the Metro Light Rail, which connects north Tempe to Sky Harbor International Airport and downtown Phoenix. The Mill Avenue District offers convenient access to numerous restaurants, bars and entertainment options in the area. Residents have access to amenities including:

  • private resident clubhouse
  • aqua lounge
  • resort-style pool
  • outdoor grilling and dining areas
  • wired business center
  • movie theater
  • 440 parking spaces

Last month, a joint venture including Goldman Sachs, BFC Partners, L+M Development Partners and Taconic Investment Partners obtained a $260 million loan to develop 202 Broome at Essex Crossing in Manhattan.

Image courtesy of Yardi Matrix