May 12, 2022 9:00 AM
Newmark announces it has completed the $14 million sale of Coldwater Plaza, an 80,601-square-foot retail center shadow-anchored by Home Depot and Sam’s Club and located in Avondale, Arizona. Newmark Senior Managing Directors Steve Julius and Jesse Goldsmith and Director Chase Dorsett represented both the seller, Grace Avondale, LLC, and the buyer, Kwon-State Ave, LLC.
Built in 2005 and sold by the original developer, WM Grace Companies, Coldwater Plaza was constructed for the long term. The property sits on a 12.58-acre lot at 1453, 1475 and 1487 N. Dysart Road in Avondale. The high-traffic shopping center is shadow-anchored by Home Depot and Sam’s Club and is fully leased to 16 tenants including Lina Furniture, Infinity Uniforms, Flames Gymnastics, Subway, Liberty Tax, Ohana Hawaiian Shaved Ice and State Farm. In January of 2022, the seller completed a new exterior paint scheme over all owned buildings, plus a new parking lot repair.
“This was a rare situation where the original developer is our seller,” said Julius. “Unlike many developers who build to sell, the WM Grace Company builds for generations of ownership, which is a testament to the long-term cash flow this asset provides. The new owner will reap the benefit of the traffic generated by the Home Depot and Sam’s Club, making this a valuable shopping center investment.”
Located in the rapidly growing southwest Phoenix submarket, Coldwater Plaza is conveniently positioned less than a mile from the I-10 freeway, which cuts through Downtown Phoenix and stretches from Los Angeles to Jacksonville. The location also offers easy access to Sky Harbor International Airport, which is a 20-minute drive northeast.
The Phoenix Metro is the third fastest-growing large U.S. metro with a below-average cost of living, which can be attributed to the number two rank among best labor markets. The area’s post-pandemic resiliency is evident across all asset classes, with 4.8 million square feet currently under construction, while both market rent and market sale price per square foot are at their highest level over the past 10 years. The Southwest Valley of Phoenix is leading the country for industrial development with almost 24 million square feet currently under construction. This explosion has led to a large increase in residential development to support the job growth. Major employers in the immediate area include the Chewy Distribution Center and an Amazon warehouse, both with over 1,000 employees.
Across the U.S., retail investment activity recovered substantially during the first quarter of 2022, according to Newmark Research. National retail sales volume increased 102.3% year-over-year to $18.6 billion, the strongest first quarter in five years. In addition to early pandemic favorites such as grocery-anchored retail, other retail segments such as strip centers have attracted investor demand in 2022. Overall consumer willingness to shop in stores has increased as COVID-19 restrictions are lifted across the country and foot traffic is being aided by trends such as “buy-online-pick-up-in-store.”
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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