Scottsdale retail center sells for $600/SF
Reported as the highest price per square foot achieved for an Arizona multi-tenant retail property over 10KSF, The Marketplace at Lincoln & Scottsdale changed hands in a private, off-market transaction. The 22,081 SF retail center, which has quickly become home to some of the hottest local eateries, sold for $14M. The Marketplace 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 developer, 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 award-winning Broadstone at Lincoln, a 264 unit luxury rental community.
The sale was negotiated by local firm, ORION Investment Real Estate. “We had no intention of selling The Marketplace. It was intended to be a legacy asset. ORION introduced the Buyer 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 continued.
The buyer, MDC Realty Advisors USA, Inc. through its U.S. affiliated company Hannay Realty Advisors is a private commercial real estate company that focuses on asset and property management in the United States. Hannay Realty Advisors currently manages approximately 12 million square feet of commercial properties and has offices in Phoenix, Denver, Los Angeles, Orange County, San Francisco, Kansas City and Las Vegas. In addition to several other transactions across the western U.S., they have recently purchased other high profile Arizona assets, including Paloma Village in Tucson, the Corner on 7th and Camelback East Shops in Phoenix. They have acquired over $400M in U.S. real estate assets in the past 36 months.
“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”, noted 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.”