Indiana Real Estate Firm Plans Apartment and Retail Project in Phoenix’s Gilbert Suburb

Article originally posted on CoStar on September 20, 2022

Thompson Thrift To Boost Arizona Holdings With $225 Million Mixed-Use Development

The Gilmore is expected to include 300 apartment units and 200,000 square feet of restaurants and retail space. (Thompson Thrift)
The Gilmore is expected to include 300 apartment units and 200,000 square feet of restaurants and retail space. (Thompson Thrift)

Thompson Thrift Commercial plans to increase its holdings in Arizona with a 300-unit apartment and retail development in Phoenix’s Gilbert suburb.

The company, based in Indianapolis, plans to break ground in the first half of next year on the project — representing a total investment of $225 million — on 35 acres off the Loop 202 freeway at the northwest corner of Val Vista Drive and Germann Road, Thompson Thrift said in a statement.

The project, called The Gilmore, is expected to include loft-style apartments and more than 200,000 square feet of restaurant and retail space in Gilbert, a fast-growing city southeast of downtown Phoenix, according to the statement.

Developers have finished more than 3,800 residential units over the past three years in Gilbert, boosting the city’s existing apartment inventory by more than 36%, according to CoStar Market Analytics. At least 1,300 more units are under construction, according to CoStar.

Thompson Thrift, which has been an active developer across the Southwest, Southeast and Midwest, paid more than $21 million to buy the land in Gilbert from private investment firm LeSueur Investments, based in nearby Mesa, according to public documents.

Thompson Thrift hired Phoenix Commercial Advisors, a locally based real estate brokerage, to handle retail leasing for the project. Thompson Thrift expects to see strong interest in the retail portion because of the employment and population growth in the area and nearby high-end residential neighborhoods, said Chris Hake, Thompson Thrift’s director of the Southwest region, in the statement.

The company recently sold The Wyatt, a 216-unit luxury apartment complex that it developed last year in downtown Gilbert, for $91 million, or nearly $422,000 per unit, to Los Angeles-based investment firm Decron Properties.

Thompson Thrift has also been active in greater Phoenix’s retail and industrial sectors. It developed the 75,000-square-foot Sonoran Creek Marketplace and sold the property for an undisclosed sum in May.

Thompson Thrift also in May bought former farmland in Phoenix’s southeast suburb of Queen Creek to develop 13 warehouses and light-industrial buildings totaling more than 1 million square feet.