Significant Multifamily Property Sale Achieved by IPA in Arizona

Author: Addison Perry Updated: 09-12-2024 07:13 PM

Major Multifamily Asset Sale by Institutional Property Advisors

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), has successfully finalized the sale of Desert Club, an impressive 497-unit multifamily property. This significant transaction, valued at $187.5 million or approximately $377,264 per unit, marks a pivotal moment in the market as it stands as the largest single asset multifamily sale in Arizona in over two years. Additionally, this sale is among the top ten largest single asset multifamily transactions in the United States so far this year.

Insights from Key Executives on the Sale

Unmatched Institutional Ownership

According to Steve Gebing, an executive managing director at IPA, the property has enjoyed an uninterrupted 20-year tenure of institutional ownership. This long-standing stability serves as a testament to the distinct physical attributes of Desert Club, coupled with the unparalleled allure of North Scottsdale, a highly desirable submarket.

Strategic Location Advantages

Desert Club's location provides residents with immediate access to two premier open-air retail destinations, Scottsdale Quarter and Kierland Commons. These centers host an array of premium retailers that cater to a remarkable demographic. Gebing noted that the average and median annual household incomes in the area are $157,000 and $109,000, respectively.

Key Property Features and Amenities

Located on 21 acres and constructed in 2004, Desert Club offers a resort-like ambiance with its garden-style layout and luxurious amenities. Residents can enjoy a heated swimming pool and spa alongside thoughtfully designed apartments featuring open-concept layouts, nine-foot ceilings, and elegantly arched entryways. The average unit size spans an impressive 983 square feet, making it an attractive living option for many.

Employment Opportunities Nearby

The thriving area surrounding Desert Club is also notable for its substantial employment opportunities. The Kierland Corridor and Scottsdale Airpark house a variety of prominent companies, adding to the community's economic vibrancy. Notable employers in the vicinity include healthcare giant Mayo Clinic, financial services firm Vanguard Group, and well-known institutions like Nationwide Insurance and American Express.

About Institutional Property Advisors

Institutional Property Advisors, a key segment of Marcus & Millichap (NYSE: MMI), is recognized for its exceptional expertise in commercial real estate. Offering a unique blend of real estate investment knowledge, capital market insights, and premier research capabilities, IPA provides tailored solutions for the buying, selling, and financing of institutional properties.

About Marcus & Millichap, Inc.

Marcus & Millichap, Inc. stands as a leading brokerage firm specializing in the sale of commercial real estate investments, offering services across the United States and Canada. With a robust team of 1,783 professionals, Marcus & Millichap closed a remarkable 7,546 transactions in the last year, amounting to an impressive $43.6 billion in sales volume.

Frequently Asked Questions

What was the sale price of Desert Club?

The Desert Club multifamily asset was sold for $187.5 million, translating to approximately $377,264 per unit.

Who represented the seller and buyer in this transaction?

IPA executive managing directors Steve Gebing and Cliff David represented Clarion Partners, the seller, and facilitated the buyer, Weidner Apartment Homes.

What unique characteristics contributed to the sale's success?

Desert Club's lengthy institutional ownership, physical attributes, and prime location in North Scottsdale were key factors in its successful sale.

What amenities does Desert Club offer?

The property features a heated resort-style swimming pool and spa, open-concept apartments, and generous living space.

How does Marcus & Millichap support its clients?

Marcus & Millichap provides comprehensive investment brokerage and financing services, along with market research and consulting aimed at assisting clients in making informed decisions.

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