Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Delano, a 265-unit multifamily property in Mesa, Arizona. The $64 million sales price equates to $241,509 per unit.
“Mesa’s low cost of living and abundance of professional opportunities are attracting many new renter households that are markedly outpacing multifamily supply,” said Cliff David, IPA executive managing director. “The single-story nature of this particular asset positions it uniquely in the submarket, which is in part leading to the exuberance of lease trade-out activity. The property also is in the midst of an interior renovation program as a majority of the apartment interiors have yet to be upgraded; adding an additional lever to new ownership’s ability to maximize revenue gains.” David and IPA executive managing director Steve Gebing represented the seller, S2 Capital and procured the buyer, Western Wealth Capital.
Delano occupies nearly 528 linear feet of street frontage along Gilbert Road and is accessible from both the Loop 202 and U.S. 60 freeways. Access to the Valley Metro light rail is one mile away. Employment corridors in the Southeast Valley include North Tempe, Mesa’s Fiesta District, and Northwest Gilbert. Tempe Marketplace, Mesa Riverview and Sloan Park, as well as Downtown Mesa give residents many retail, dining, and entertainment options nearby.
Built in 1980 on approximately 20 acres, Delano is a single-story, low-density community of 14 units per acre. Resident amenities include a contemporary fitness center with vaulted ceilings, a resort-style swimming pool with shade sails, a dog park and an outdoor Wi-Fi lounge with extensive landscaping, seating, and bistro lighting. Apartments have stackable washers and dryers, wood-style vinyl flooring and private patios. The average unit size is 651 square feet.