IDEAL Pays $108M for 325-Unit Phoenix Community

CBRE brokered the deal.

IDEAL Capital has purchased Sentio, a 325-unit luxury community in Glendale, Ariz., for $108 million from Hines Interests. The buyer also obtained a $60 million Freddie Mac loan, according to Yardi Matrix. CBRE originated the note and negotiated the transaction, with Vice Chairman Asher Gunter leading the broker team.

  • IDEAL Capital bought Sentio from Hines in deal brokered by CBRE.
  • IDEAL Capital bought Sentio from Hines in deal brokered by CBRE.
  • IDEAL Capital bought Sentio from Hines in deal brokered by CBRE.

A joint venture of Hines Interests and MetLife Investment Management developed the property and brought it online in 2023. Dekker Perich Sabatini designed Sentio. According to Hines, the property was fully leased as of November 2022 through a master agreement with a major employer.

The 13-acre asset features one-, two- and three-bedroom floorplans ranging from 640 to 1,388 square feet, across six three-story buildings. Select units have walk-in showers and double sink vanities. Community amenities include a swimming pool, a sundeck, a clubhouse, coworking spaces, a dog park, fitness centers and a gaming area.

Sentio is at 3600 W. Happy Valley Road, 3 miles east of Interstate 17, some 18 miles north of downtown Glendale and roughly 21 miles north of downtown Phoenix. Major employers within an 18-mile radius include Banner Thunderbird Medical Center, Magellan Aerospace and Avanti.

Deem Hills Recreation Area, a 1,000-acre park with hiking areas and sport fields, is less than 2 miles from Sentio. Happy Valley Towne Center, a mall featuring more than 800,000 square feet of retail including 52 stores, is roughly 2 miles away from the property.

Growing in Phoenix

With the addition of Sentio to its portfolio, IDEAL’s footprint now exceeds 1,000 units in metro Phoenix, according to Yardi Matrix. The company entered the market in 2021, with the $84.5 million acquisition of the 296-unit The Hyve, the same source shows.

Investment activity took a big hit last year due to limited lending availability. Year-to-date through November 2023, Phoenix volume dropped to $2.5 billion, roughly a quarter of 2022’s $10.6 billion, a Yardi Matrix report shows. Per-unit prices maintained solid however, at $272,467 on average, significantly above the national $186,300 figure.

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