June 6, 2023 9:00 AM
Newmark announces it has facilitated the sale of Ahwatukee Mercado, a 95% leased retail center shadow-anchored by Safeway Grocery Store. The asset traded for an undisclosed amount.
Newmark Senior Managing Directors Steve Julius and Jesse Goldsmith and Director Chase Dorsett represented the seller, Westwood Financial. The buyer was Investments Concepts, Inc.
“This is a fantastic, stable income-producing shopping center with the neighborhood grocery store draw that investors are looking for,” said Julius. “The retail market in Phoenix is very healthy. The asset traded at a 6.75% cap rate, a trend we continue to see among grocery center assets as investors desire to invest at a higher cap rate than the cost of borrowing. This deal also obtained favorable new financing at a great rate.”
Located at 4747 East Elliot Road, the property totals 54,065 square feet which includes a Safeway Grocery Store and 21 tenants, two of which are freestanding restaurants. Ahwatukee Mercado is just one mile west of the I-10 Freeway and adjacent to residential neighborhoods, Walgreens, O’Reilly Auto Parts and Chase Bank.
The shopping center is situated at the lighted intersection of Elliot Road and 48th Street, just minutes from a major employment district, exposing the property to nearly 60,000 vehicles daily. Situated in a high-demographic neighborhood, the property is proximate to major freeways, the airport and quick access to all parts of the Phoenix MSA.
Despite a slowing U.S. economy, 2023 forecasts in the Phoenix retail market are overwhelmingly positive with every major statistical category performing stronger than the market has seen in the last two decades. Sales transaction volume in the first quarter of 2023 totaled $369 million, with the rolling four quarters volume remaining over $2 billion. Retail leasing remained strong, with vacancy dropping for another consecutive quarter, sitting at 5% throughout the Metro. Investor and user optimism in the Phoenix market remains high due to consistently experiencing the highest population growth of any metro area, along with a steadily decreasing vacancy rate, according to Newmark Research.
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. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of March 31, 2023, Newmark’s company-owned offices, together with its business partners, operate from over 170 offices with approximately 7,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
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.