PHOENIX – A once maligned, but well-located shopping center in the heart of one of Phoenix Metropolitan area’s best master-planned communities, is returning to its former glory.
Foothills Park Plaza is located on the southwest corner of Chandler Boulevard and Desert Foothills Parkway in the affluent area of the Ahwatukee Foothills master-planned community. The 4,140 acre Foothills Master-Planned development has been named "Best Master-Planned Community" four times by the Home Builders Association of Central Arizona. Tenants at the intersection include Safeway, Walgreens, Bank of America, Ace Hardware, Chase, and more.
Foothills Park Plaza, a 20,173 square foot retail center, closed for $3,125,000 ($155 PSF). The center was 78% occupied at close of escrow with a good mix of service and retail tenants. The transaction was negotiated by Ari Spiro and Sean Stutzman of ORION Investment Real Estate. The Seller, Pacific West Land Development Company, headquartered in Bainbridge Island, Washington, has been one of the largest buyers of distressed retail assets over the past 8 years; the Buyer was Branch Investment Group out of Newport Beach, California, who are looking to grow their portfolio in the Phoenix market.
Spiro remarked, "The Sellers originally acquired the property through a note acquisition. Being one of the most prolific Buyers during this past downturn, Pacific West has developed a strong reputation of stabilizing once struggling assets and turning them around to functional properties that enhance the surrounding neighborhood.”
"At 78% occupancy, the Seller left some room in the deal for the Buyer to further improve the occupancy, income, and value to the property. With an aggressive leasing platform, the new owner plans to add more great services to the Ahwatukee Foothills community," Stutzman concluded.