Scottsdale Community Commands $260M Record Price
JLB Partners' sale of The Moderne marks the largest single-asset multifamily sale in Arizona history.
JLB Partners has sold The Moderne, a 369-unit community in Scottsdale, Ariz., for a record price of $260 million, or $704,607 per unit. A joint venture between Apartments Management Consultants LLC and JB Partners acquired the property after securing a $169 million acquisition loan from Forethought Life Insurance Co., public records show.
The firm completed the property back in 2015 when it secured a $52 million construction loan from Pacific Life Insurance Co., according to Yardi Matrix data. Executive Managing Directors Steve Gebing and Cliff David of Institutional Property Advisors, a division of Marcus & Millichap represented both parties in the transaction, setting an all-time high among single asset multifamily sales in Arizona history.
Spanning 9.7 acres, the community comprises nine buildings with one-, two- and three-bedroom apartments, averaging 951 square feet with in-unit washers and dryers, walk-in closets, private patios, as well as integrated desks and bookshelves, built-in wine racks and private yards in select units. Common-area amenities include a swimming pool, clubhouse, wellness center and electric car charging stations.
Located at 4848 N. Goldwater Blvd., the community is less than half a mile away from Fashion Square, which encompasses 1.9 million square feet of retail, dining and entertainment options. Downtown Scottsdale and the city center are within a mile from the property. Camelback Corridor, the state’s second-largest employment hub is 5.5 miles away from the property, as well.
Scottsdale’s multifamily market is setting records
The Moderne is one of the 10 other properties completed downtown Scottsdale in the past 20 years and represents a core investment due to the scarcity of developable land, local government policy and competitive shelter from the future supply, mentioned Gebing, in a prepared statement.
Moreover, outsized forecasts for rent growth reflect the imbalance of supply and demand in the submarket, added David. Currently, there are 11 properties under construction in the area, that will add roughly 3,155 units to the inventory, Yardi Matrix data shows.
In February, IPA represented JLB Partners in the transaction of Roadrunner on McDowell, another 356-unit luxury community in Scottsdale, Ariz., for $193.5 million, $543,539 per unit, a record-setting price at that time.