November 12, 2020, 10:00 AM
Newmark announces that it has arranged the $2.4 million sale of Fry’s Shops at Ellsworth, a four-unit multi-tenant retail center, in Mesa, AZ.
Newmark’s Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Chase Dorsett represented the developer and seller, Evergreen-Broadway & Ellsworth, LLC, an affiliated entity of Evergreen Devco, Inc. The 1031-exchange buyer, Stephen Burke, was represented by Cushman & Wakefield.
The 5,823-square-foot building, located at 439 South Ellsworth Road, is 100 percent occupied and consists of four tenants—Subway, Little Caesars, Pink Nails and Lotus Garden Restaurant. The property is shadow anchored by a recently remodeled Fry’s Marketplace grocery store.
“Shopping centers like Fry’s Shops at Ellsworth are still in strong demand because of the draw from the neighboring grocery store, a daily visit, essential goods use,” said Julius. “This particular building is remodeled with good restaurant and service uses, each with fresh five-year lease terms. It will provide simple stability for years to the new investor.”
This transaction marks the seventh grocery-shadow-anchored property the Newmark team has sold in last 18 months.
According to Newmark Research, Phoenix retail sales volume increased slightly in the third quarter of 2020 but is still below pre-COVID figures. The overall average cap rate remained at 7.1 percent while overall vacancy increased 40 basis points from 7.3 percent in second-quarter 2020 to 7.7 percent in third-quarter 2020. The vacancy rate is more than 250 basis points above the national index and is considered relatively low for the Phoenix market due to past years of oversupply. The expansion of drive thrus, discount retailers and grocers will continue to drive interest for both national and local investors.
About Evergreen Devco, Inc.
Founded in 1974, Evergreen specializes in retail and multifamily development, tenant roll outs, project and construction management, property management, asset management, sustainable building and solving financing issues for various retailers and franchises. Working throughout the nation, Evergreen has earned a reputation as an industry leader by delivering high-quality real estate developments and services reliably, efficiently and cost effectively. The company has over 58 employees with offices in Arizona, California, Colorado and Utah. Evergreen is currently engaged in the development of more than 60 retail and apartment projects and has completed more than 600 projects. www.evgre.com.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.