Institutional Property Advisors Closes $80 Million Multifamily Asset Sale in Gilbert, Arizona
Marcus & Millichap (NYSE:MMI) announced the sale of Alta Cooley Station, a 248-unit, mid-rise multifamily property in Cooley Station, Gilbert, Arizona, for $80 million, averaging $322,581 per unit. The property achieved one of the strongest multifamily lease-ups in Gilbert's history, with strong demographic profiles and proximity to major employment areas. The seller was Wood Partners, and the buyer was a private California-based individual.
The sale of Alta Cooley Station for $80 million, at a per-unit cost of $322,581, signifies a robust demand for multifamily properties in the Gilbert, Arizona region. This transaction underscores the attractiveness of the area's demographic profile, which boasts high average and median household incomes. The strong lease-up rate post-opening highlights the property's appeal and suggests a healthy rental market. The presence of major employers like Boeing and Intel in the vicinity enhances the location's desirability, potentially leading to stable occupancy rates and rental income stability for the new owner.
From a real estate investment perspective, the rapid leasing activity could be indicative of a wider trend in the region towards multifamily living, driven by the local economic growth and the high concentration of tech and business services sectors. This sale may influence future valuations of similar properties and could attract further investment into the area, potentially escalating property values and reshaping the local real estate market dynamics.
The sale of Alta Cooley Station reflects broader economic trends in the Gilbert area, particularly the synergy between real estate development and economic growth in high-tech manufacturing, finance and business services sectors. The transaction not only reveals the economic vitality of the region but also the potential for sustained growth, given the concentration of high-income households and major employers. These factors often correlate with increased consumer spending and a higher demand for upscale residential options.
The impact of such a significant real estate transaction extends beyond the immediate stakeholders, potentially influencing regional development and infrastructure investments. The economic multiplier effect of this sale could lead to job creation and ancillary business opportunities, further reinforcing the economic stability and attractiveness of the area to both residents and investors.
Analyzing the sale of Alta Cooley Station in the context of the local market, the $80 million price tag and impressive lease-up rate post-opening are reflective of a strong multifamily market in Gilbert. This performance metric serves as a benchmark for other developments in the area and could potentially raise the market expectations for similar properties. The proximity to a lifestyle center and key employment hubs is a significant value-add for residents, likely contributing to the property's leasing success.
Understanding the demographics and consumer preferences in Gilbert is crucial for developers and investors. The successful sale of Alta Cooley Station, with its high-end amenities and strategic location, could set a precedent for future developments, encouraging a shift towards more luxury multifamily units to meet the demand of the affluent local population.
12/26/2023 - 08:04 PM
GILBERT, Ariz. --(BUSINESS WIRE)--
Marcus & Millichap (NYSE:MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Alta Cooley Station, a 248-unit, mid-rise multifamily property in Cooley Station, an upscale master-planned community in Gilbert, Arizona . The asset traded for $80 million $322,581
“Averaging 30 net leases per month after opening in January 2023, Alta Cooley Station achieved one of the strongest multifamily lease-ups in Gilbert’s history,” said Steve Gebing, IPA executive managing director. “With average and median household incomes of $130,000 $101,500 Gilbert has one of the strongest demographic profiles in Arizona . Gilbert , Chandler , and Mesa combined have the highest concentration of high-tech manufacturing, finance, and business services employers in the Valley.” Gebing and IPA executive managing director Cliff David represented the seller, Wood Partners, and procured the buyer, a private California based individual.
Alta Cooley Station’s proximity to Loop 202 provides residents convenient access to employment in Gilbert’s central business district, the Gateway Employment Area, Elliot Road Technology Corridor, Chandler Airpark Area, and Price Road Corridor. Major area employers are Boeing, Intel, Morgan Stanley, Northrop Grumman, and Arizona State University. Verde at Cooley Station, a 23-acre, Main Street-inspired lifestyle center with health and wellness facilities, retail, dining, and a park is within immediate walking distance.
Alta Cooley Station is a four-story asset with a swimming pool and spa, outdoor entertainment space, open-concept leasing office/clubhouse, micro-offices, private conference room, and workspaces. Apartments have expansive floorplans, nine- and 10-foot ceilings, extra-wide entryways, laundry closets with full-size washers and dryers, and a private patio or balcony. The average unit size is 957 square feet.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America . IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offers customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada . As of December 31, 2022, the company had 1,904 investment sales and financing professionals in 81 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 12,272 transactions in 2022, with a sales volume of approximately $86.3 billion www.MarcusMillichap.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20231226801689/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Source: Marcus & Millichap, Inc.
What is the name of the company that announced the sale of Alta Cooley Station?
Marcus & Millichap (NYSE:MMI) announced the sale of Alta Cooley Station.
Where is Alta Cooley Station located?
Alta Cooley Station is located in Cooley Station, Gilbert, Arizona.
How much did Alta Cooley Station sell for?
Alta Cooley Station sold for $80 million, averaging $322,581 per unit.
Who represented the seller of Alta Cooley Station?
Gebing and IPA executive managing director Cliff David represented the seller, Wood Partners.
Who was the buyer of Alta Cooley Station?
The buyer of Alta Cooley Station was a private California-based individual.
What are some of the amenities at Alta Cooley Station?
Alta Cooley Station features a swimming pool and spa, outdoor entertainment space, open-concept leasing office/clubhouse, micro-offices, private conference room, and workspaces.
What are the average unit size and features at Alta Cooley Station?
The average unit size is 957 square feet, with expansive floorplans, nine- and 10-foot ceilings, extra-wide entryways, laundry closets with full-size washers and dryers, and a private patio or balcony.
What are some of the major area employers near Alta Cooley Station?
Major area employers near Alta Cooley Station include Boeing, Intel, Morgan Stanley, Northrop Grumman, and Arizona State University.
