Dealmaker: IPA Brokers $177M for Multifamily, Retail
Institutional Property Advisers brokered nearly $177 in financing for a multifamily asset sale in Arizona and a grocery-centered retail center in Pennsylvania.
IPA, a division of Marcus & Millichap, announced sale of The Wyatt, a 216-unit luxury multifamily asset in Gilbert, Ariz. The $91 million sales price represents $421,296 per unit.
Steve Gebing, IPA Executive Managing Director, and IPA executive managing director Cliff David represented the seller, Thompson Thrift Residential, and procured the buyer, Decron Properties.
The Wyatt has direct frontage along Gilbert Road, the Southeast Valley’s main thoroughfare connecting Gilbert to Chandler and Mesa. Gilbert’s revitalized historic downtown Heritage District is two miles from the property. Rivulon, home to Deloitte, Morgan Stanley, Amerifirst Financial, Merrill Lynch and Isagenix International’s world headquarters, is three miles away. Residents have convenient access to Gilbert’s central business district, and shopping is close by at SanTan Village and SanTan Village Marketplace.
Completed this year, The Wyatt’s apartment homes have nine-foot ceilings and washers and dryers; average unit size is 980 square feet. Common area amenities include a swimming pool and spa, pavilion with social seating and recessed fireplace, resident clubhouse, community courtyard, playground, covered parking and detached garages.
“One of the nation’s most prosperous large cities, Gilbert is a top suburban submarket target for multifamily investment in Greater Phoenix,” Gebing said. “The city attracts an affluent resident base of working professionals with average and median annual household incomes of $128,100 and $99,800, respectively. Population growth has outpaced multifamily supply by a multiple of eight since 2010, creating above average physical occupancy and extremely strong rent growth.”
IPA also announced sale of Upland Square, a 400,716-square-foot retail shopping center in Pottstown, Montgomery County, Pa., at a purchase price of $85.7 million. AMC Theatre as well as the freestanding pads were not included in the sale.
Brad Nathanson, IPA Senior Managing Director of Investments, represented the seller, Lakewood, N.J.-based Paramount Realty Services Inc., and procured the buyer, United Hampshire US REIT. MCB Real Estate was retained for property management.
Built in 2009 and expanded in 2019, Upland Square is located on Route 100/Pottstown Highway, two miles north of Route 422, a major east-west corridor between two regional employment hubs, King of Prussia and Reading. The retail plaza draws from a population of 200,000 people with an average annual household income above $105,000 within a 10-mile radius.
Nathanson said the property experienced “tremendous” leasing velocity in recent years, bringing in 11 new tenants totaling over 134,000 square feet, “Anchored by a 76,500-square-foot Giant Food Stores, the market share leader in Pennsylvania, and shadow-anchored by a 147,071-square-foot Target, Upland Square is one of the largest and most successful grocery-anchored power centers in the Philadelphia MSA with over 4.1 million visitors in the trailing 12 months,” he said.
More than 60% of the center is tenanted national chains, including Burlington, LA Fitness, Five Below, Ross, Bed Bath & Beyond, Staples, TJ Maxx, Petco and Ulta Beauty.
