Northern Palms & Augusta Cove
Value Add Opportunity in Central Phoenix - 95 Units
Marketing description
CBRE is pleased to present the exclusive offering of Augusta Cove, a 45-unit apartment community, and Northern Palms, a 50-unit apartment community, both conveniently located adjacent to each other in north central Phoenix. This unique opportunity allows for the purchase of these properties as a combined 95-unit portfolio, offering flexibility to operate them either as a single entity or as separate assets. The properties benefit from their proximity to the revitalized metrocenter Mall, just an 8-minute drive away. This major redevelopment, with a nearly $1 billion investment, is transforming the mall into a vibrant urban village featuring luxury homes, condos, retail, restaurants, parks, and a rooftop event space, creating a connected, walkable hub with easy access to the new Thelda Williams Transit Center.
Northern Palms, originally built in 1984, underwent a complete refurbishment in 2016, including new windows, doors, roofs, new HVAC systems, electrical systems, controlled-access gates, a dedicated leasing office and storage, and updated kitchens and bathrooms. The property features spacious one-bedroom floor plans averaging 650 square feet, designed with open layouts and ample storage.
Augusta Cove, built in 1972, offers a variety of unit types, primarily two-bedroom units, along with one-bedroom, three-bedroom, and studio apartments. This community is designed in a casita style, spread across 2.5 acres, with private backyards, adjacent parking, and individually metered utilities. This combined offering presents a rare opportunity to acquire two contiguous properties and capitalize on operational efficiencies. The portfolio also offers significant value-add potential through interior and exterior renovations, allowing for increased rental rates and enhanced property value.
Investment highlights
Close Proximity to the $1 Billion Metrocenter Mall Redevelopment: In 2025, demolition commenced at Metrocenter Mall to pave the way for The Metropolitan, a nearly one-billion-dollar transit-oriented urban village. This transformative redevelopment of the former mall site will feature over 1,000 for-rent and for-sale townhomes, along with new and attractive retail, dining, and entertainment venues. The Metropolitan will also boast luxury residences and be thoughtfully designed with shaded walkways, plazas, courtyards, and a central park, including a rooftop event space. Augusta Cove and Northern Palms are strategically located just an 8-minute drive south of this exciting development.
Robust Economic Growth and Diversification: Central Phoenix is a powerhouse of economic activity, demonstrating impressive growth across various sectors. The city was ranked #4 among large cities nationwide for economic growth between 2019 and 2023, showcasing a substantial 42% GDP growth and a 12% increase in median earnings. This growth is not singular but diversified, with technology (especially semiconductor manufacturing by giants like TSMC, Intel, and Amkor), advanced manufacturing (aerospace, EV production, battery technology), healthcare, financial services, and education all playing significant roles. This broad economic base provides stability and a continuous influx of high-wage jobs, which in turn fuels demand for housing.
Strong Job Market and Population Influx: The vibrant economy directly translates into a booming job market and sustained population growth, crucial factors for multifamily investments. Phoenix added nearly 55,000 new jobs in 2024, predominantly in the high-growth sectors of technology, healthcare, and advanced manufacturing. This job creation acts as a magnet, drawing new residents to the metropolitan area, which was one of the fastest-growing in the U.S. with over 89,000 new residents in 2024. This consistent influx of people, often seeking more affordable living compared to coastal cities, creates a strong and continuous demand for rental properties.
High Demand for Multifamily Properties and Rental Income Potential: The confluence of job growth and population expansion has created a high demand for multifamily housing in Central Phoenix. This strong demand often translates into higher rental income potential for investors. In 2024, the Phoenix multifamily market recorded a healthy 6.7% rent growth year-over-year, outpacing the national average. Investing in multifamily properties allows for portfolio diversification and reduces reliance on a single income stream, as multiple units can attract diverse tenants. Historically, multifamily properties in Phoenix have also shown consistent appreciation in value, often outperforming single-family homes.
Strategic Location and Ongoing Development: Central Phoenix benefits from its strategic location within the broader metropolitan area, offering excellent connectivity and access to major employment hubs, educational institutions, and amenities. This central position makes it a desirable place to live for a wide range of demographics. Furthermore, ongoing urban development and revitalization projects continue to enhance the appeal and value of properties in the area. These developments, coupled with investments in infrastructure and public services, contribute to a dynamic and evolving urban environment that attracts both residents and businesses.
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