101212 . 25 Home SFR Phoenix AZ, Phoenix, AZ 85339
25 home leased portfolio in the highly desirable Phoenix market
Homes are all in one community adjacent to each other
Located just west of the new Loop 202 to the south of I-10, providing easy access to the entire metro Phoenix area
All homes are an optimal mix of 3- and 4-bedroom homes between 1,402sqft and 1,912sqft with 2-car garages and yards
Current rent is estimated to be below market rent, providing the investor an ability to increase yields as leases renew
Corner lots are 50’ x 120’ and the rest 45’ X 120’
The average lot size in the community is 5,492/SF
Estimated property vacancy rate of only 3.08%
Metro-Phoenix has experienced exceptional YoY rental rate increases, with a 13.3% YoY increase currently
Opportunity to grow revenue by 15.8% through 20205
Phoenix realized a 30.1% home price appreciation YoY
Phoenix was the #1 fastest growing city between 2010 and 2020
Strong in-place rent with strong projected rent appreciation
Personal income in the Phoenix Metro area increased 8.3% in 2021
All SVN® Offices Independently Owned & Operated
Local Broker License Information: www.SFRhub.com/realstatelicensing
Director of Brokerage Services
SVN | SFRhub Advisors
License #: BR507919000
Visit SFRhub.com and search for portfolio 101212 for more information
This new construction rental portfolio offers investors twenty-five (25) single-family detached homes, 8 of which were built in 2021 and 17 delivered in 2022, by the well-renowned home builder, Starlight Homes. The new buyer has a significant opportunity to add to their current portfolio or enter the hottest single-family rental market, Phoenix Arizona, with a turn-key, low maintenance, and easily manageable SFR investment within the highly sought-after Estrella Vista Subdivision in Laveen Village, AZ, a submarket in south Phoenix. All homes are fully leased with quality tenants, contiguous to one another, and consist of three spacious floor plans. The Sterling offers 1402/SF with 3Bed, 2Bath, and a 2Car garage, the Moonbeam offers 1662/SF with 3Bed, 2Bath, and a 2Car garage, and the Prism offers 1912/SF 4Bed, 3Bath, and a 2Car garage. Phoenix has experienced some of the strongest home price appreciation and rent growth in the country and has ranked #1 three years in a row for net migration, with nearly 90,000 people moving to the valley every year. With the ongoing low supply of inventory and huge demand for rental homes, this portfolio offers outstanding risk mitigated, revenue growth opportunities unlike any other asset class in the area.
These newly constructed homes offer an in-place income with average rents at $2,199 per month, value adds the opportunity to grow yields by driving rents to market rate and taking advantage of the continued rent growth achievable in the Phoenix market over the next several years. The seller’s asking price is reflective of current retail values in Estrella Vista, though rents are below current mortgages available in the market for home buyers in the community, offering pride of ownership lifestyle and affordability. All homes are equipped with tile in common areas and carpet in the bedrooms, stainless steel appliances, granite countertops, open kitchens, energy-efficient designs, and private backyards. The community offers residents pocket parks and walking trails and immediate access to major thoroughfares and freeways, with the recently completed Loop 202, connecting south Phoenix to both the east & west valley. Such convenience allows quick access to the valley's hottest shopping, dining, and nightlife experiences, as well as access to over 21,000 employers, and +730,000 jobs concentrated within a 30-mile radius with multiple Fortune 500 companies.
Estrella Vista’s 25-home SFR investment portfolio is poised to take advantage of the market conditions. According to John Burns Real Estate Consulting, an investor can expect to continue riding the rental market wave that has swept the valley with one of the nation’s top rental growth markets. Current YOY rent growth is 13.3% and 2022 is anticipated to see an additional 9.5% rent growth given the limited supply of available homes. Future rent growth is anticipated to be 15.8% through 2025, offering an investor to drive revenue from the current gross income from $660K to $764,280. Employment growth in the Phoenix Metro is at 4% YOY and is projected to continue upward momentum along with strong household income growth of 8.8% through 2025. This all bodes well for any investor looking to deploy capital, hedge inflation, and find a strong, stable asset to increase yields and provide quality housing.