PHOENIX—The Marketplace at Lincoln & Scottsdale, a 22,081 square foot retail center, which has quickly become home to some of the hottest local eateries, sold for $14 million. The property is located on Scottsdale Road and Lincoln Drive, one of the most recognizable intersections in the Phoenix metropolitan area and the gateway to the affluent Paradise Valley community.
The property developed by Len Noel of Covington Asset Management has been a labor of love. Noel originally purchased a bank-owned, office project on 7.5 acres in 2011 that had reached obsolescence. The following year, Covington sold off approximately 5.3 acres to Alliance Residential, who recently completed their Broadstone at Lincoln, a 264 unit luxury rental community.
The off-market, private sale was negotiated by ORION Investment Real Estate. “We had no intention of selling The Marketplace. It was intended to be a legacy asset. ORION introduced the buyer (MDC Realty Advisors USA, Inc.) to us and we quickly developed a relationship with the buyer and realized that they shared a very similar long-term vision for the property,” says Noel.
With demographics among the most affluent in the Southwestern United States, Scottsdale Road frontage, an award winning design, and a premier residential community as its anchor, The Marketplace became an instant success. “It was a difficult decision to part with The Marketplace. In my many years in the industry, I have never had such an overwhelming interest from tenants on any project that I have developed or redeveloped. We are thrilled with what we created and to have a like-minded group to pass the torch to,” Noel continues.
“MDC is extremely active in acquiring and operating high-end properties in prominent locations. The Marketplace was a natural strategic fit in growing their impressive local portfolio into Scottsdale,” says Ari Spiro, president of ORION, who brokered the transaction along with partner, Sean Stutzman. “MDC, with a strong local management presence, will continue looking to grow their footprint in the Phoenix market.”
Spiro concludes, “We have sold several retail properties that surpass the $500 per square foot threshold, but none can match The Marketplace's combination of location, demographics, design, while incorporating the mixed-use element of an award-winning residential community as its anchor. Those factors widely recognized, it is no wonder that the center has quickly became home to a strong mix of salons and boutiques, Opus Bank and valley hotspots of Sumo Maya, Vivo! Ristorante and Scramble.”
At a $634 per square foot purchase price, The Marketplace at Lincoln & Scottsdale represents the highest price per square foot ever achieved for a multi-tenant retail center over 10,000 square feet in Arizona. The previous record was also set by ORION in the November 2008 sale of The Shops at Zocallo at $630 per square foot. That center is located at the northeast corner of Scottsdale Road and the Greenway-Hayden Loop.
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