$194M Sale of Scottsdale Apartment Building Breaks Records
The sale of Roadrunner on McDowell is the largest single asset core multifamily sale and second-largest single asset multifamily sale overall in Arizona history.
In a record-breaking deal, Roadrunner on McDowell in Scottsdale has traded hands for $193.5 million. The deals is the largest single asset core multifamily sale and second-largest single asset multifamily sale overall in Arizona history, according to the Institutional Property Advisors brokers that worked on the transaction.
Roadrunner on McDowell is a 356-unit apartment building developed by JLB Partners and delivered to the market this year. It is a mid-rise, garden-style property with proximity to Papago Park and Downtown Phoenix and access to 700,000 renters within a five-mile radius. The surrounding area features a wealth of employers and amenities retail options, including General Dynamics, HonorHealth, Vitalant, Yelp, Indeed, Banner Health, and Opendoor, as well as designer art galleries, lively nightlife, and Scottsdale Stadium is three miles away.
Scottsdale has been gaining momentum over the last year. In August, a limited liability company headed by private investor Tom Kowalski, based in Englewood, CO, purchased the Joshua Tree Apartments, a 330-unit apartment complex, for $21 million purchase. A limited liability company headed by private investor. The class B apartment, which was built 13 years ago, sold in six weeks, and Kowalski plans to spend $750,000 in the next 12 to 18 months on improvements to the property.
In addition, multifamily developer ZOM Living entered the Phoenix market last year. The firm plans to invest $500 million in the market and build more than 1,600 units in North Phoenix, Scottsdale and the Biltmore District. ZOM acquired three parcels to develop its 1,600 units. One in Desert Ridge/North Phoenix, which will accommodate 600 units; another in Downtown Scottsdale, where ZOM will build nearly 750 units; and a parcel in Biltmore District for the development of 300 units.
Roadrunner on McDowell features high-end finishes, including hand-scraped hardwood floors and walk-in closets with custom wood shelving and private patios or balconies. The property itself features a resort-style swimming pool and spa with private poolside cabanas, an outdoor entertainment ramada with social seating, flatscreen televisions, a misting system, and barbecue grilling stations acts as a pass through to a Zen Garden.
Steve Gebing and Cliff David of Institutional Property Advisors brokered the transaction.