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Historic High Demand Drives Record-Breaking Multifamily Sales in Greater Phoenix

September 20, 2022
PHOENIX, Sept. 20, 2022– Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE:MMI), announced today that historic demand drivers have resulted in record-breaking multifamily sales in Greater Phoenix, Arizona.

“Competition for apartments in Phoenix led to 170% sales volume growth and 98% growth in the total number of transactions in 2021,” said Cliff David, IPA executive managing director. David, along with Steve Gebing, IPA executive managing director, brokered three recent sales with California-based KB Development Co., led by founder Khosro Khaloghli, “As a result of competition, many California-based investors pushed eastward. The ensuing battle to secure much sought-after multifamily assets in prime submarkets broke sales price records throughout the Valley.”

In February, Khaloghli purchased Roadrunner on McDowell, a 356-unit multifamily asset in Scottsdale for $193.5 million. The $543,539 price per unit at the time was the highest in Arizona’s history for an institutionally sized apartment building. The transaction was also the largest single asset core multifamily sale and second-largest single asset multifamily sale overall in Arizona history at the time. David and Gebing arranged the sale.

David and Gebing also recently brokered two high-profile multifamily sales in Phoenix on behalf of Khaloghli. In December 2021, KB Development Co. sold 312-unit Arboretum at South Mountain for $118.25 million and in March 2022, Mountainside, a 288-unit asset that sold for $132.5 million.

“Khosro Khaloghli is one of the most interesting individuals I’ve met in my 20-year career,” said David. “His professional and personal history is incredibly inspiring. Khaloghli arrived in the U.S. in 1964, with no connections or prospects, no English language, and just $400 in his pocket.”

Khaloghli leveraged his wrestling skills into a scholarship at Cal Poly Pomona where he graduated with a bachelor’s degree in urban planning and a master’s in business and public administration. He launched his first real estate investment company while still in school and completed his post-graduate studies with a Ph.D. in urban economics.

Over the next five decades, Khaloghli’s real estate development firm, KB Development Co., achieved success in both commercial and multi-residential real estate projects. KB has built and owned close to 10,000 residential and multifamily units and over 12 million square feet of industrial and office properties.

Khaloghli has been active in the Phoenix multifamily market since 2015, when KB purchased 392-unit Stone Canyon Apartments in Mesa, a unique-in-class, high-performing asset; and Superstition Canyon apartments in Mesa with 200 units that he acquired in 2020 and subsequently sold in 2021. Khaloghli’s multifamily acquisitions in the premium Ahwatukee submarket included Mountain Park with 240 units; Mountainside with 288 units; and Arboretum at South Mountain with 312 units. In the last 12 months, transactions for KB included 306-unit Palms Luxury Apartments, formerly Green Leaf on Bell, for $95.5 million; 280-unit Arts District Apartments in Central Phoenix for $127 million; and Skywater at Town Lake with 328 units for $160 million.

With over $1 billion invested in Arizona multifamily, Khaloghli isn’t stopping any time soon. He stated: “I see a bright future for the region and will continue working with IPA on new transactions. Cliff and Steve have been outstanding partners to me in my Arizona investments since 2014 when I first met them and began researching the Phoenix market. I’ve always appreciated their professionalism and sound recommendations.”

“Khaloghli’s acquisitions, especially Roadrunner on McDowell, embody the very definition of trophy real estate,” Gebing added. “The property is in the top echelon of assets in the Scottsdale submarket for quality, rarity and value.” Completed in 2022, Roadrunner on McDowell’s design pays homage to the mid-century architectural style that is so present in South Scottsdale. “With today’s capital market volatility, it’s clear to me that Khaloghli made astute, well-timed investment decisions with incredible foresight. The discernment he acquired over his 50-year career is profound,” added David. “Khaloghli has no doubt made an indelible footprint in the Phoenix multifamily market.”


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About Institutional Property Advisors (IPA)

Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit

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