August 3, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has completed the sale of six retail centers across Arizona and New Mexico for a combined total of 148,268 square feet and a sale price of over $43 million. Newmark’s Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Director Chase Dorsett facilitated the transactions, in cooperation with the local brokers noted below.
“Each of these transactions represented various sellers and buyers and for many different reasons,” shared Julius. “The momentum of the market for neighborhood retail centers is significant, and investors recognize the value in shopping centers that offer neighborhood services. Compared to multifamily and industrial properties, the yields are slightly higher in retail plazas.”
- Fairlanes Village in Tempe, Arizona – Newmark represented seller, PV Rural, LLC, in the $6.85 million transaction to buyer, Reddy Holdings, LLC, et al. The 40,658-square-foot neighborhood retail center, built in 1981 and renovated in 2016, sits on 4.65 acres, is situated along Rural Road just south of U.S. 60 in Tempe, Arizona. Aside from the excellent location and neighborhood, Fairlanes Village boasts a well-balanced tenant mix of national and local retailers. National retailers include Jerry’s Artarama and FedEx; local, internet-resistant tenants include Dr. Bob’s Coffee, Jenni Nails and Dental Design Studio.
- Northern Crossing in Glendale, Arizona – Newmark represented the buyer, Schell, Inc, et al, and the seller, Northern Crossings SPE, LLC, in the $4.09 million transaction. The 7,960-square-foot retail pad is 100% leased to five tenants including Firehouse Subs, Bank of America, Supercuts, ATI Physical Therapy and T-Mobile. Located on the southeast corner of 59th Avenue & Northern Avenue, the freestanding building is positioned in front of a Walmart Supercenter and Lowe’s.
- Harvest Plaza in Tempe, Arizona – Newmark represented seller, BRLS Properties II, LLC, in the $5.35 million transaction to buyer, Cahuenga Capital Gilbert, LLC. The 10,312-square-foot retail center is located in the southeast valley of Phoenix on Elliot Road. The plaza’s key tenant, Harvest Enterprises, Inc., is a publicly-traded marijuana dispensary.
- Mesa Center in Rio Rancho, New Mexico – Newmark represented seller, Hawkins Companies, LLC, in the $4.7 million transaction to buyer, Gibson Medical Center, LLC. The 29,077-square-foot property is 100% leased to twelve tenants in the heart of Rio Rancho’s busy commercial district, adjacent to a Smith’s (Kroger) grocery store. Perry Kesler of Real West Realty, LLC cooperated with the Newmark team in brokering the sale.
- Northern Lights Shopping Center in Glendale, Arizona – Newmark represented buyer, SS Plaza 51, LLC, in the $5 million transaction from seller, SJ & SM, LLC. The 29,441-square-foot, multi-tenant shopping center consists of five buildings and houses 18 tenants who make up an average long-term occupancy of over ten years. The property’s northwest corner location presents a high traffic count signalized intersection, offering excellent signage and street front exposure.
- Plant Shops North & South in Chandler, Arizona – Newmark represented the buyer, Armstrong Capital Development in the $18.3 million purchase of this Class A retail center. Situated at 4205 & 4225 S Gilbert Road, the portfolio features new high-quality construction completed in 2018 with sleek modern architecture design elements. The property, comprised of 30,820 square feet, is 92% leased to a strong mix of internet-resistant tenants, including Barre3, AT&T, Zoyo Yogurt, Tryst Café and Dunkin Donuts to name a few.
“In the first 6 months of 2021, we have seen a 40% increase in sales transactions and a 63% in sales volume, compared to the same period last year, “ Goldsmith added. “Capital rate returns in 2021 year-to-date are averaging 7.18%, which is on-par to the years before the pandemic.”
The Newmark team has ten additional centers set to close escrow in the next two months, plus six new listings coming to market soon.
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. Our comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, growing startups to leading companies. In 2020, Newmark generated revenues in excess of $1.9 billion. Newmark, together with London-based partner Knight Frank and independently owned licensees, operates globally from approximately 490 offices with 19,300 professionals. To learn more, visit nmrk.com or follow @newmark.
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