PHOENIX—Institutional Property Advisors, a division of Marcus & Millichap, closed the sale of Stone Canyon, a 392-unit community in Mesa. The $47 million sales price represents $120,000 per unit.
IPA senior director Steve Gebing and Marcus & Millichap vice president investments Cliff David advised the buyer, O.R.R. Mesa 1 LLC.
David tells GlobeSt.com, “The buyer is a major private client, but this was a first-time Phoenix purchase. It was very important to them to work with Marcus & Millichap to match those institutional quality assets for them. We knew it was a good fit. The pricing delta was key; they had an opportunity to buy a 15-year-old property, but at a significant discount to replacement cost—and they could still add some value. Another point was location. Mesa has a very diverse business climate led by health services. Banner Gateway has a 60-acre campus, but also owns an adjacent 46 acres. And finally are Mesa's population growth projections over the next five years. All these points will drive rent revenue going forward.”
Built in 2000 on 23.7 acres, the property is located off U.S. Route 60 at 5210 East Hampton Ave. in Mesa. The community is near employers such as Banner Gateway Hospital and Banner Baywood Hospital, the Boeing Co.'s Apache helicopter facility, and Grand Canyon University's new, 10,000-student east Valley campus. In addition, two retail landmarks, Superstition Springs Center and Village Square at Dana Park, are within three miles of the subject property.
Stone Canyon's floor plans range from 727 square feet to 1,146 square feet and feature nine-foot ceilings, built-in computer desks, plush carpeting and walk-in closets. Community amenities include two pools, a fitness center, a clubhouse and resident lounge, outdoor fire pit with cushioned seating, barbecue grilling stations with entertainment areas, a nine-hole putting green and mountain views.
David says the buyer plans to make some improvements to the common areas and perform select interior renovations.
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