April 27, 2022 9:00 AM
Newmark announces it has arranged the $16.43 million sale of Phoenix West Plaza, a 163,233-square-foot retail center in Phoenix, Arizona.
Newmark Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Director Chase Dorsett represented the seller, Aetna West, LLC. The buyer, Gale Commerce Center, LTD, purchased the asset in a 1031 tax differed exchange, using proceeds from a property sale in California.
The property is located at 4344 W Indian School Road and was 93% occupied at the time of sale to 25 tenants. Aetna Realty, an New York-based investment firm, purchased the property in 2012 and invested approximately $5 million in renovations and repairs.
“While this property had its ups and downs, including high vacancies resulting from the Great Recession and struggling tenants from the pandemic, I’m excited to see the future through the new ownership,” said Julius. “It is a value buy at only $100 per square foot of building area and comes with over 14 acres of land. With ownership’s hands-on approach and ability to visit the center frequently, this shopping center will continue to improve.”
Located just west of downtown Phoenix, the property is conveniently positioned between two major interstate highways that cut through the metro area as well as 15 minutes from the Sky Harbor International Airport. 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.
According to Newmark Research, investors continue to trade for properties in fast-growing, high-income areas such as Scottsdale and many other areas among the East Valley. The vast majority of investors continues to come from California-based firms looking for lower overhead and long-term upside in consumer demand. In the last 24 months, market sales price and rent per square foot are up, 11.0% and 29.0% respectively, creating high yields for both leasing and sales. Cap rates are the lowest the Metro has experienced in years but are expected to stabilize with sales volume and price per square foot expected continue rising in 2022.
 Dba Newmark Knight Frank in Arizona
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 in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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