Biltmore Area Strip Center Sells for $227 Per Square Foot
PHOENIX, ARIZONA – The Shops at 24th Street and Osborn recently sold for $1,700,000 to an individual investor based in the Bay Area. The strip center built in the 50’s but remodeled in 2007 was 100% occupied to a diverse group of internet-resistant tenants including Fitness, Food and a Wine Bar. Ari Spiro and Sean Stutzman of ORION Investment Real Estate handled the marketing effort while Michael Achtman and Jennifer Eggert of ORION brought the Buyer. “The Sellers originally purchased this center as a distressed asset a decade ago. Since then, they have stabilized the rent roll and taken advantage of rapidly improving 24th Street Corridor. With thousands of residential units recently constructed or coming on line, the area will continue to transform, offering the new owner an opportunity increase revenue over time,” explains Sean Stutzman of ORION.
The dearth of quality retail investment opportunities under $2 Million helped garner multiple offers for the asset. The Shops at 24th Street has terrific visibility with 25,000 vehicles per day passing its oversized monument sign. Located less than 2 miles from the Camelback Corridor, the infill property services the neighborhoods of Biltmore, Paradise Valley and Arcadia, as well as the 650,000-daytime population within 5 miles. This was an appealing investment opportunity since the in-place, average rental rate is just over $16/NNN in a submarket where retail rates soar as high as $30/NNN.
Buyer’s agent Michael Achtman stated, “This deal was an ideal fit for the buyer who was in an exchange and looking to make his first purchase in the AZ market from the Bay Area. With all the new residential units and remodels in the area and trendy restaurants and retail in the surrounding area this property was attractive to the buyer for its current success and future upside potential as well.”