JB Partners Pays $150M for Scottsdale Luxury Asset

SeventyOne15 McDowell. Image via Google Street View

JB Partners has purchased SeventyOne15 McDowell, a newly built 274-unit luxury multifamily property in Scottsdale, Ariz., for $150 million, or $547,445 per unit.

The seller was AMC, according to Yardi Matrix data. The same source indicates that the acquisition was financed through a $105 million loan originated by NewPoint Real Estate Capital.

Marcus & Millichap’s Institutional Property Advisors represented the seller and procured the buyer.

Alliance Residential completed the community this year. Located at 7115 E. McDowell Road, the five-building property encompasses one-, two- and three-bedroom apartments ranging between 600 and 1,726 square feet. Units are equipped with stainless steel appliances, quartz countertops, digital lock, as well as washers and dryers, according to Yardi Matrix. Common-area amenities include a clubhouse, a fitness center, a swimming pool, a spa center, a rooftop terrace and parking.

All-time high multifamily figures in Phoenix

The luxury asset is situated on a 10.5-acre lot, close to SkySong, the ASU Scottsdale Innovation Center, 2.5 miles from Old Town Scottsdale, 6.3 miles from Phoenix Sky Harbor International Airport and within 10 miles of downtown Phoenix. SeventyOne15 McDowell is also close to major employers, such as Banner Health, HonorHealth, Indeed, General Dynamic or Vitalant.

The Institutional Property Advisors team led by Executive Managing Director Steve Gebing and Managing Director Cliff David arranged the transaction.

According to a recent Yardi Matrix report, more than $7.5 billion in multifamily assets traded in Phoenix this year through July, surpassing the annual investment activity recorded in the past 10 years. The price per unit rose to an all-time high of $340,653. One of the largest multifamily sales of 2022 in the metro was recorded in Scottsdale earlier this year: JB Partners acquired The Moderne, a 369-unit community, for the record price of $260 million, or a $704,607 price per unit.