Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of The Moderne, a 369-unit mid-rise multifamily asset in Scottsdale, Arizona developed by JLB Partners. The $260 million sales price equates to $704,607 per unit. The transaction is the largest single asset core multifamily sale in Arizona history.
“One of only 10 assets constructed in Downtown Scottsdale over the last 20 years, The Moderne is an iconic, generational multifamily asset that pairs high-end finishes with walkability to the state’s top luxury retail shopping destination, Scottsdale Fashion Square,” said Steve Gebing, IPA executive managing director. “The scarcity of developable land, coupled with local government policy and competitive shelter from future multifamily supply make this asset an exceptional core investment.” Gebing and IPA executive managing director Cliff David represented the seller, JLB Partners, and procured the buyer. “We were fortunate to have support from the City of Scottsdale and surrounding neighbors when we started this project in 2013,” said Kevin L. Ransil, Arizona Partner for JLB Partners. “The community is a timeless addition to the exciting fabric of Downtown Scottsdale, which keeps getting better. We’re excited about the future for the new buyers.”
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“Characterized by its high-value real estate, best-in-class employment opportunities and leisure activities, Scottsdale is the most coveted submarket in Arizona,” said David. “Outsized rent growth forecasts for the city reflect the area’s imbalance of multifamily supply and submarket demand.”
The Moderne is within walking distance of one of Arizona’s most prominent intersections, Scottsdale Road and Camelback Road. The 1.9 million-square-foot Scottsdale Fashion Square, home to luxury retail, world-class dining and entertainment is a minute’s walk away. Old Town Scottsdale and Scottsdale Waterfront are proximate to the property and access to several of the Valley’s most in-demand employment corridors, including the finance-driven Camelback Corridor, Arizona’s second-largest employment concentration is nearby. There are over 15,000 businesses and more than 640,000 working professionals within 10 miles of the asset.
Completed in 2015, The Moderne’s distinctive interiors have nine-foot-plus ceilings, full-size washers and dryers, hardwood flooring, walk-in closets with custom wood shelving, and private patios. Select units have integrated desks and bookshelves, built-in wine racks, pass-through laundry chutes, and private yards. Common area accommodations feature an expansive resort-style pool and spa, a best-in-class leasing office, resident clubhouse, and wellness center. Additional amenities include electric car charging stations and private garages.