Metro Phoenix's commercial real estate market demonstrated significant activity in October, with five major transactions totaling over $383 million. These deals, spanning land, multifamily apartments, office space, and industrial facilities, highlight continued investor confidence across diverse sectors of the regional economy.
The largest single transaction was the sale of nearly 160 acres of agricultural land in Glendale for more than $118 million, signaling strong expectations for future development in the West Valley. Meanwhile, high-value apartment complex sales in Phoenix and Scottsdale underscore the persistent demand in the residential rental market.
Key Takeaways
- Over $383 million in capital was deployed across the top five commercial real estate deals in Metro Phoenix in October.
- A $118.1 million land sale in Glendale was the month's largest transaction, pointing to future development projects.
- Two luxury apartment complexes in Phoenix and Scottsdale sold for a combined $137.4 million, showing strength in the multifamily sector.
- The deals also included a major office complex in Scottsdale and an industrial bakery facility in Phoenix, indicating a well-rounded market.
Glendale Land Sale Points to Future Growth
The most significant deal of the month involved a vast tract of undeveloped land in the West Valley. A parcel of 159.5 acres of agricultural land in Glendale, located at the northwest corner of North Litchfield Road and Northern Parkway, was acquired by Kenneth Davies from Woolf Leyton Farms.
The sale price was a substantial $118,115,902. This valuation breaks down to approximately $740,538 per acre, a figure that reflects the high premium being placed on undeveloped land suitable for large-scale projects in strategic growth corridors.
While the buyer's immediate plans have not been disclosed, transactions of this magnitude are typically precursors to major residential, commercial, or industrial developments. The location near key transportation routes like the Northern Parkway makes it a prime candidate for logistics centers or master-planned communities.
Why the West Valley is Booming
The West Valley, encompassing cities like Glendale, has become a hub for industrial and technological development. Its proximity to major freeways, availability of large land parcels, and a growing workforce have attracted significant investment in recent years, particularly in the logistics, manufacturing, and data center industries.
Multifamily Housing Commands Premium Prices
The multifamily sector accounted for two of the top five deals, demonstrating that investor appetite for apartment complexes in prime Phoenix locations remains robust. These transactions highlight a focus on high-end properties in desirable neighborhoods.
Echo Biltmore Sells for Over $71 Million
In Phoenix, the Echo Biltmore apartment complex was sold for $71,300,000. The 216-unit property, located at 1720 E. Camelback Rd., was purchased by Millburn and Company from the developer, Wood Partners. This sale price translates to a per-unit cost of over $330,000.
The Biltmore area is one of Phoenix's most prestigious commercial and residential districts, known for its upscale shopping, dining, and corporate offices. Investments here are often seen as stable, long-term plays due to the area's sustained appeal and high barrier to entry for new construction.
Scottsdale on Main Fetches $66 Million
Further east, the Scottsdale on Main Apartments, a luxury 119-unit complex, was acquired by Goodman Real Estate for $66,100,000. Located at 6901 E. Main St. in the heart of Old Town Scottsdale, this deal is particularly noteworthy for its per-unit price.
The sale of Scottsdale on Main equates to an impressive $555,462 per unit, one of the highest per-unit prices seen in the market this year. This reflects the premium value of its location and luxury amenities.
The seller was a partnership between Baron Properties and Mountain West Industrial Properties. The high valuation underscores the intense demand for modern, well-located multifamily assets in Scottsdale, a city known for its tourism, nightlife, and affluent resident base.
Office and Industrial Sectors Show Resilience
Rounding out the top transactions were significant deals in the office and industrial sectors, proving that investment is not solely concentrated in land and residential properties. These sales reflect confidence in the future of in-person work and the critical importance of the industrial supply chain.
Axis Raintree Office Complex Acquired
In North Scottsdale, the Axis Raintree office complex at 8605 E. Raintree Dr. was sold for $70,710,891. The 179,360-square-foot property was purchased by Douglas Reagan Horton from Trammell Crow Company in a deal brokered by JLL.
This sale of a modern office facility is a positive indicator for a sector that has faced uncertainty. It suggests that high-quality, well-located office buildings continue to attract significant investor capital, likely from buyers who believe in the long-term value of premium workspace.
Phoenix Bakery Facility Changes Hands
The fifth-largest deal was the sale of the Café Valley Bakery facility at 7000 W. Buckeye Rd. in Phoenix. The industrial property was sold by Brookhollow to SENTRE Partners for $57,750,000. Cushman & Wakefield brokered the transaction.
This deal highlights the strength of the industrial market, particularly for specialized facilities like food production and distribution centers. The location in West Phoenix is a key logistics hub, and the sale reinforces the critical role of industrial real estate in the region's economy.
A Market of Diverse Opportunities
Taken together, October's top five commercial real estate transactions paint a picture of a healthy and diverse Metro Phoenix market. From speculative land purchases in the growing West Valley to premium apartment buildings in established luxury corridors, investors are deploying capital with confidence.
The significant investments in both the office and industrial sectors further suggest a balanced market that is not reliant on a single asset class. As the Phoenix area continues to grow in population and economic output, these large-scale transactions signal a strong belief in its long-term trajectory.
