By: Daniel Benson; Belfiore Real Estate Consulting
Mark Stapp, director of ASU’s Master of Real Estate Development (MRED) Program, should be very proud to learn that two of his recent MRED graduates have partnered up on a prominent apartment development in Gilbert. MRED Alumni Paul Stark and Michael Banach have formed MRED G.T.S. LLC, a development entity which has acquired a 14.36 acre commercial site in the Gilbert Town Square Center (SWC Gilbert Rd and Warner Rd).
According to entitlement documents, the site is planned for a 307-unit class A apartment community which is being branded as the Residences at Gilbert Town Square (click here to view the project website). According to public record, MRED G.T.S. LLC acquired the overall site through two separate transactions. The first transactions (click here to view the affidavit) included an 11.29 acre parcel and closed on 7/19/2013 for $2,234,400. The second transaction (click here to view the affidavit) included a 3.07 acre parcel and closed on 7/19/2013 for $267,458. In total MRED G.T.S. LLC paid a combined purchase price of $2,501,858 for the overall site ($8,149 per planned unit / $174,224 per acre).
The seller in the transaction was Wal-Mart (Nasdaq: WMT). Wal-Mart originally planned a retail big box for the site but scrapped the development plans after receiving strong neighborhood opposition.
Before closing on the site, MRED G.T.S. received entitlement approval. The developer received approval for a minor general plan amendment from shopping center to residential between 14-25 du/acre. The developer also received rezoning approval from shopping center to a multi-family medium zoning district with a PAD overlay (click here to view the Gilbert Planning Commission report). The entitlements were approved by the Gilbert Planning Commission at its April 3, 2013 meeting and later by the Gilbert Town Council at its June 6, 2013 meeting (click here to view the meeting minutes).
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