If you enjoy fine dining and shopping at upper-tier boutiques in Scottsdale, you’ve likely spent at least some time at The Moderne. The multi-function real estate development has been the center of numerous restaurants and shops over the last decade. And now, it has sold for a record amount of money.
Earlier in the week, Marcos & Millichap's Institutional Property Advisors purchased The Moderne for $260 million. With a total of 369-units, the per-unit sum checks in at $704,607. This, according to AZ Big Media, represents the largest single asset core multifamily sale in the history of Arizona.
Construction on The Moderne nearly a decade ago back in 2013, although it did not reach completion until 2015. Currently, the complex is home to over a dozen restaurants, including The Mission Old Town, Yard House, The Willows Restaurant, Bourbon & Bones, Culinary Dropout, Roaring Fork, Hand Cut Chophouse, and others. As for shopping, visitors can stop by Scottsdale Waterfront, Anthropologie, Express, The Enclave at Borgata, and the Scottsdale Fashion Square Mall. There are even a half-dozen coffee shops attached to the property, including Echo Coffee, Cartel Coffee Lab, Fourtillfour Coffee, and Starbucks.
There is no word yet as to what, if any, changes tenants will see moving forward. Ink on the newly signed contracts is still drying, so additional insights into the purchase and any future developments and plans will likely come out in the coming months. Institutional Property Advisors found the particular property especially desirable due to several factors. Scottsdale itself is one of the most attractive markets in the entire state, especially as, according to the investors, there is an imbalance in multifamily supply versus demand, so the ability to own and control a large number of multifamily units makes it a valuable asset to have. On top of this, the complex is within 10 miles of over 15,000 businesses and over 640,000 working professionals. For those moving to the city for work or who are interested in starting their own business, the close proximity of The Moderne can make it a desirable location for moving. The inclusion of private garages, as well as electric charging stations, only amplifies the attractiveness of the property to new tenants.
Some of the available units within the property include everything from built-in wine racks all the way to private yards. Some common amenities of The Moderne include a spa, a resort-style pool, plus a clubhouse as well as a wellness center.