Institutional Property Advisors Closes $80 Million Multifamily Asset Sale in Gilbert, Arizona
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Insights
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.
“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
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
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
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.
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