Phoenix, AZ – CBRE has completed the sale of the Shops at Arrowhead Gateway located at 17560 and 17570 N. 75th Avenue in Glendale, Ariz. The ±35,684-square-feet of shops on an outparcel of Arrowhead Towne Center Mall commanded a sale price of $10.1 million ($283 PSF).
Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office negotiated the transaction on behalf of the buyer, NLT Properties, LLC of Las Vegas, Nevada. The seller is FPWL Bell and 75th, LLC, a Bainbridge Island, Washington-based company, and was represented by Chad Tiedeman and Steve Underwood with Phoenix Commercial Advisors.
“Arrowhead Gateway is a great fit for the purchaser’s goals. It allows them to diversify from their Nevada real estate assets, while successfully completing their 1031 exchange,” said CBRE’s Julius. “The location is excellent; the Arrowhead submarket will continue to flourish and see further rent growth.”
Julius also points to the unique mix of service related retailers and medical users as a benefit to the property.
“The blend of traditional, daily retailers and medical or health-related tenants has definitely becoming part of the “new normal” of retail, particularly where neighborhood shopping and strip centers are concerned,” said Julius. “Healthcare providers and vendors are increasingly focused on becoming more accessible and convenient for their patients.”
Julius says these types of tenants are a boon to retail centers because they often invest more into their infrastructure, which makes them less likely to move. They lend stability and longevity for both landlords and the surrounding communities, alike.
The Shops at Arrowhead Gateway also benefit from a growing surrounding community that includes more than 287,000 residents and more than 119,000 households within a five-mile radius. The mall-anchored property was 95 percent occupied at time of sale. The tenant roll includes Red Mountain Weight Loss, iRepair Plus, Salon Boutique, Merle Norman and other service related retailers, as well as a medical component with IMS Urologist, IMS Allergist, Noah’s Ark Pediatrics, and Desert Valley Dental.