Multi-tenant retail building occupied by The Habit Burger Grill, Tempur-Pedic, Pearle Vision and Blaze Pizza sells for $901 psf.

GLENDALE, Ariz. – Hanley Investment Group Real Estate Advisors, announced tthat Executive Vice President Bill Asher and Vice President Jeff Lefko have arranged the sale of a multi-tenant, pad building shadow-anchored by the 1.2-million-square-foot Arrowhead Towne Center Mall in Glendale, Ariz. The 8,433-square-foot pad building is leased to The Habit Burger Grill, Tempur-Pedic, Pearle Vision, and Blaze Pizza. The sale price was $7.6 million, representing more than $901-per-square-foot.

Asher and Lefko represented the seller, ECC Bell Road Property LLC based in Indianapolis. The buyer, a family trust based in Orange County, Calif., was represented by Pat Kent and Parker Walter of SRS Real Estate Partners in Newport Beach, Calif.

The four-tenant building is located on 1.37 acres at 7870 W. Bell Road in Glendale at the signalized intersection of Bell Road and 79^th Avenue with 50,000+ cars per day. The 100-percent occupied property, which was built in 2017, is located 1/2 mile from the Loop 101 freeway (116,000 cpd), a 62-mile beltway connecting the east and west cities of Greater Phoenix.

“The buyer acquired a pride of ownership investment at arguably one of the highest traffic signalized intersections in Glendale, Arizona,” said Asher. “The pad building is shadow-anchored by the highest volume regional mall in Arizona, which is a tremendous benefit to the property. There are over 1.57 million people in the trade area and 10.8 million visitors each year that visit Arrowhead Towne Center Mall; that is twice as many that visit the Grand Canyon.”

Mall anchors include AMC Theatres, Dick’s Sporting Goods, Dillard’s, Forever 21, JCPenney, Macy’s, and Sears. Other nearby prominent national tenants include Walmart Supercenter, Target, Costco, T.J.Maxx, Trader Joe’s, Ross, ULTA Beauty, Chick-fil-A, In-N-Out Burger, and Starbucks.

Lefko adds that the four-tenant pad building is located on a major east/west Phoenix corridor and features four brand-new, long-term leases with strong fixed increases (10 percent or 12 percent) every five years, which made this investment very attractive.

Asher notes that the property also benefits from the dense, affluent demographics in the area. The average household income in a three-mile radius of the property is $84,000 and there are over 296,000 people within a five-mile radius. The property is just four miles from one of the region’s most wealthy and sought-after neighborhoods, Arrowhead Ranch.

Glendale is in the northwestern part of the Phoenix MSA and is the sixth largest city in Arizona. The city also was ranked #1 “Emerging Travel Destination” by Trivago (2017); #5 “Best Midsize Sports City” by WalletHub (2018); and #1 “Most Diverse Suburb in Arizona” by Niche (2018).

The city of Glendale is an entertainment destination with 13 hotels with another three additional hotels planned or under construction and Westgate Entertainment District, a 23-acre, $1 billion sports and entertainment district anchored by Gila River Arena, home of NHL’s Arizona Coyotes. Adjacent is the State Farm Stadium (formerly University of Phoenix Stadium), the home field of the Arizona Cardinals in the National Football League since 2006, and the annual Fiesta Bowl college football game since 2007. The stadium will host the 2023 Super Bowl and 2024 NCAA Final Four; $100 million in upgrades planned from 2018-2023.

“As the retail investment market transitions forward into the second half of this year, trophy properties like this one in Glendale, Arizona, demonstrate that investors will continue to transact at premium pricing for properties with excellent real estate fundamentals in ‘A’ locations in major markets across the country,” Asher said.

TUCSON, ARIZONA — The River 5, LLC (Otto R Bohon, Jr., manager) purchased a 3,926-square-foot office condominium, Suite 208, located in Mesquite Corporate Centre, 1640 E. River Rd. in Tucson.  The class-A office condominium was purchased from the George and Jane Caughman Family Trust of California for $778,989 ($198 PSF).

The buyer, dba Catalina Investment, purchased it to owner occupy and is moving from its currently leased space at 1660 E River Road #180, also in Mesquite Corporate Centre.

Thomas J. Nieman, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction.  Brenna Lacey with Volk Company represented the buyer.

The 2,313-square-feet of office space at 1660 E. River Road in Tucson vacated by Catalina Investments was then sold to KC Posse, LLC (Robert Keith Newlon, manager) for $424,000 ($183 PSF).   The single-tenant office condominium, Unit 180, was purchased from Webcor, LLC to be owner occupied by an affiliate business dba Pioneer Title.

Thomas J. Nieman, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction.

For more information, Nieman should be reached at 520.546.2728 and Lacey can be contacted at 520.326.3200.

To learn more, see RED Comp #6861

Creative office redevelopment enjoys 100% occupancy with national credit tenants

PHOENIX, Arizona – EverWest Real Estate Investors and CarVal Investors have completed the $46 million sale of The Circuit, a 185,000-square-foot adaptive re-use office project located at the intersection of the Loop 101 and Loop 202 in Tempe, Arizona.

EverWest and CarVal were represented by Chris Toci of Cushman & Wakefield. The property buyer is Strategic Office Properties, a wholly owned subsidiary of TPG Real Estate.

“The Circuit was designed to attract large, creative office users and it has been a textbook execution of that strategy,” said EverWest Managing Director for the West Coast Amr Ceran. “Our successful redevelopment and lease-up here, combined with The Circuit’s high-profile location, garnered significant institutional interest and led to a strong sale that will bring benefit to all parties.”

“The conversion of this project from a dated manufacturing facility to the innovative, collaborative space you see today is truly transformational,” added CarVal Investors Managing Director Mark Kunkel. “That bodes well for the future of these two dynamic tenants.”

The Circuit is 100 percent occupied by two national credit tenants: Oscar, the country’s fastest growing health insurance startup, leasing 139,700 square feet, and On Q Financial, a leading online provider of mortgage tools, leasing 44,600 square feet.

Located on 16 acres at 615 S. River Dr. in Tempe, The Circuit represents a $14 million redevelopment completed by EverWest and CarVal between July 2014 and September 2016, transforming the project from a 1982-built semiconductor building into an ultra-modern office concept.

Directed by design and architecture firm Gensler, interior amenities at The Circuit include 17-foot ceilings, 14-foot floor-to-ceiling windows and more than 60 skylights to maximize natural light. The Circuit also features a host of indoor-outdoor amenities such as glass roll-up doors, large landscaped patios and outdoor entertainment areas. The project’s parking ratio, at 7:1,000, is approximately 40 percent higher than most other office buildings in the market.

EverWest has an active track record of successful creative office renovations spanning major markets across the West. In addition to The Circuit, these include LINQ in Redondo Beach, California; Junction 23 in Denver, Colorado; The Quad in Scottsdale, Arizona; and UpCycle in Austin.