3 Palms Hotel in Scottsdale, Arizona, Sells for $23 Million

Article originally posted on CoStar on November 13, 2023

Private investors based in California have purchased the 3 Palms Hotel on East McDowell Road near Old Town Scottsdale. (CoStar)

The 3 Palms Hotel in Scottsdale, Arizona, along with the on-site 5,500-square-foot restaurant occupied by Gecko Grill, sold in October to California private investors for $23 million.

The seller was a private individual also based in California.

The 3 Palms Hotel was built on 2.9 acres in 1978 and remodeled in 2007, and the restaurant was built in 1980 with renovations completed in 2017, according to CoStar data. Hotel amenities include a rooftop sundeck, concierge, fitness center, and a large pool and spa. Hotel rooms include deluxe spas, vertical mirrors and high-speed internet.

The 130-room hotel, at 7707 E. McDowell Road, is located near Old Town Scottsdale and accessible to Loop 101, Loop 202 and Interstate 10. The hotel’s location within an opportunity zone made it appealing for a 1031 exchange, according to a statement announcing the sale.

The entertainment district in Scottsdale boasts Arizona’s highest revenue market for hotels. The area hosts special events such as MLB spring training, the Waste Management Phoenix Open and Barrett Jackson Auto Auctions.

For the Record

James Meng, senior vice president of Colliers, brokered the transaction, handling all negotiations and sale details.

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