Romano Real Estate Sells Pavilions Shopping Center in Mesa for $15.3 Million
PHOENIX, ARIZONA – Romano Real Estate of Tucson announced this week the sale of the Pavilions Shopping Center in Mesa for $15.3 million ($123.07 PSF). The 129,601-square-foot mixed-use neighborhood retail center was built in 1986 on 10.41 acres of land located at 1837-1955 W Guadalupe Road in Mesa, Arizona, at the southeast corner of Dobson and Guadalupe Roads.
David Carroll and John Yarborough with Romano Real Estate Corporation represented the seller, Pavilions Shopping Center Limited Partnership, and David Jarand with Strategic Retail and West Valley Properties, Inc., dba West Valley Arizona represented the California investor, CP6PV, LLC.
The property sold 98% occupied with a variety of tenants that include five quality restaurants (including Native Grill & Wings, La Famiglia Pizza & Pasta, Barbeque House, and Pink Pepper Thai Cuisine), an event center, fitness & dance uses (including Anytime Fitness), furniture uses, both medical and office uses (including Banner Urgent Care), fashion boutiques, and several other complimentary uses.
The cap rate on 2018 scheduled income was 7.69%.
Romano Real Estate Corporation took over the leasing of the property in 2016 and leased nearly 37,000-square-feet in the Center bringing the occupancy level up to 98%. Many of the leases are still below market rents, allowing the investor a “Value Added” opportunity.
“The leasing effort lead to the sale of property,” said Carroll. “In 2016, when we took over the property, it was 75% occupied. We then leased approximately 32,000-square-feet at the center to ‘Amazon-proof’ type of tenants to bring it up to the stabilized 98% occupancy it sold at.”
Romano is active with other retail centers in the Phoenix and Tucson markets.
For more information, Carroll should be reached at 520.577.1000 ext. 7114 and Yarborough is at 520.577.1000 ext. 117.