TUCSON, AZ (January 4, 2024) The Rillito Crossing Marketplace at 4210-4240 North 1st Avenue in Tucson was sold to an investment group from Lake Forest, IL, Prairie Hill Holdings, for $27.525 million ($285 PSF). The seller, Rillito Retail, LLC, an Epic Real Estate Partners affiliate based in Austin, TX, purchased the property in 2019. This is Prairie Hill Holdings' first acquisition in Tucson.
Patrick Dempsey and Bryan Ley of JLL handled the transaction.
Built in 2008, the property has a 96,424 RSF core and excess land for additional development. Located at the northeast corner of 1st Avenue and Limberlost Drive, the property sits in the dynamic Oracle Wetmore retail node, just 4 miles from the University of Arizona. Rillito Crossing Marketplace was 97% leased to a mix of local and national “daily-needs” tenants consisting of grocery, fitness, health/wellness, restaurants, and other complementary uses. Covering +-13.01 acres, the property includes two vacant land parcels totaling 2.78 acres that are prime for additional retail development. The grocery-anchored neighborhood center included Sprouts, LA Fitness, and all inline shops and pads. Vantage West Credit Union pad is owned separately.
National grocery anchor Sprouts Farmers Market (SFM: NASDAQ) has over six years of lease term remaining with subsequent option periods. This dominant grocer04 recently completed a $1.2 million interior remodel in concert with a 10-year renewal in 2019.
Included were two vacant parcels, providing a value-added opportunity for an investor to develop additional leasable square footage at the center. The larger +- 2.23-acre parcel is just south of LA Fitness. This shovel-ready piece allows for up to 35,000 square feet of additional retail. The second 0.55-acre parcel fronts 1st Avenue and is ideal for a fast food or quick service user for up to 28,000 square feet of additional shop and/or anchor space.
Rillito Crossing Marketplace is in Tucson’s premier Oracle / Wetmore retail trade area, offering a large national presence and wide consumer draw. The dense population of over 243,000 people in a 5-mile radius and direct access to the Catalina Foothills are reasons why occupancy has remained high at the property.
Rillito Crossing Marketplace is an ideal daily-needs neighborhood center with over 1,150 apartment units (2,110 residents) within a quarter mile. Over 19,300 people live within a 1-mile radius, and the shopping center is a direct beneficiary.
For more information, Dempsey can be reached in the Phoenix office of JLL at 602.956.777, and Ley is in the Los Angeles office at 310.407.2120.
To learn more details, see RED Comp #11050.