Major Multifamily Property Sale by Institutional Property Advisors
Institutional Property Advisors (IPA), part of Marcus & Millichap (NYSE: MMI), has successfully completed the sale of Desert Club, a remarkable 497-unit multifamily property. Valued at $187.5 million, or about $377,264 per unit, this sale is significant as it represents the largest single asset multifamily transaction in Arizona in over two years. Furthermore, it ranks among the top ten largest single asset multifamily sales in the United States this year.
Executive Insights on the Sale
Unmatched Institutional Ownership
Steve Gebing, an executive managing director at IPA, highlighted that Desert Club has maintained uninterrupted institutional ownership for two decades. This long-lasting stability reflects both the unique physical features of the property and the undeniable appeal of North Scottsdale, which is a highly sought-after submarket.
Strategic Location Benefits
Desert Club's location offers residents quick access to two leading open-air shopping destinations, Scottsdale Quarter and Kierland Commons. These shopping centers feature a wide range of upscale retailers aimed at a very affluent demographic. Gebing mentioned that the average annual household income in the area stands at $157,000, with the median income at $109,000.
Notable Property Features and Amenities
Spanning 21 acres and built in 2004, Desert Club exudes a resort-like atmosphere thanks to its garden-style design and high-end amenities. Residents can enjoy a heated swimming pool, a spa, and well-planned apartments that showcase open-concept layouts, nine-foot ceilings, and gracefully arched entryways. With an average unit size of about 983 square feet, it presents an appealing living choice for many.
Good Job Opportunities Nearby
The vibrant area surrounding Desert Club is also noteworthy for its robust employment landscape. The Kierland Corridor and Scottsdale Airpark are home to a variety of well-known companies, enhancing the area's economic health. Major employers in the vicinity include the Mayo Clinic, financial services leader Vanguard Group, and other recognizable names like Nationwide Insurance and American Express.
About Institutional Property Advisors
Institutional Property Advisors, a vital division of Marcus & Millichap (NYSE: MMI), is well-regarded for its unmatched expertise in commercial real estate. With a unique combination of real estate investment knowledge, insights into capital markets, and exceptional research capabilities, IPA delivers customized solutions for the buying, selling, and financing of institutional properties.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc. is a top brokerage firm that focuses on the sale of commercial real estate investments, providing services across the United States and Canada. With a dedicated team of 1,783 professionals, Marcus & Millichap accomplished an impressive 7,546 transactions in the last year, resulting in a sales volume of $43.6 billion.
Frequently Asked Questions
What was the sale price of Desert Club?
The Desert Club multifamily property sold for $187.5 million, which is approximately $377,264 per unit.
Who acted on behalf of the seller and buyer during this transaction?
IPA executive managing directors Steve Gebing and Cliff David represented Clarion Partners, the seller, while assisting the buyer, Weidner Apartment Homes.
What factors contributed to the success of the sale?
The property's long history of institutional ownership, appealing physical attributes, and prime location in North Scottsdale played crucial roles in the sale's success.
What amenities are included at Desert Club?
The property boasts a heated resort-style swimming pool and spa, open-concept apartments, and spacious living areas.
How does Marcus & Millichap assist its clients?
Marcus & Millichap offers a full range of investment brokerage and financing services, combined with market research and consulting to help clients make informed decisions.
