Buyer attracted to area demographics, stable long-term occupancy
PHOENIX, Arizona – The Phoenix office of JLL has completed the $11.2 million sale of Ocotillo Plaza, a redeveloped retail building situated in the heart of Chandler’s Ocotillo area, a thriving residential, retail and employment hub adjacent to the popular Price Road commercial corridor.
JLL Senior Vice Presidents Peter Bauman and Tivon Moffitt, Senior Managing Director Dennis Desmond and Senior Vice President Tyson Switzenberg represented the building seller, Thompson Thrift Retail Group. Nina Patel represented the buyer, Southern California-based Slater Avenue II LP.
Ocotillo Plaza totals 121,829-square-feet at 2880 S. Alma School Road, on the northwest corner of Queen Creek and Alma School roads in Chandler, Arizona. The building and 10-acre site was purchased in 2017 by Thompson Thrift and then renovated from a former Target store into a multi-tenant retail building that is now fully leased to Goodwill and the flagship location of Shoppers Supply, a ranch, home and outdoor supply retailer.
The repositioned building sits within the larger Ocotillo Plaza shopping center, which is also in the process of a redevelopment that includes the addition of an Aldi supermarket. It is part of a desirable retail corridor boasting anchor tenants such as Albertsons, HomeGoods, Office Max, Sprouts and Stein Mart.
“Investors continue to be attracted to high quality, stabilized greater Phoenix commercial real estate, and that created significant investor demand for this listing,” said Bauman. “The area’s demographics, combined with this building’s newly renovated space and its stable long-term tenancy, were a strong draw for the buyer. We were very pleased to work with them on a property that we believe will provide a high-quality, income-producing asset for their portfolio.”
“It has been a pleasure to work with the entire JLL team on this transaction,” said Chris Hake, Thompson Thrift Vice President, Director of the Southwest Region. “We feel this redevelopment exemplifies the need for creativity in today’s retail real estate environment. As the Prie Road corridor continues to grow its office presence and its number of daily employees, this intersection of Alma School and Queen Creek Road will continue to show strong results from the retailers that are located there. Again, thank you to Tyson Switzenberg, Peter Bauman and Tivon Moffitt for their outstanding work on this project.”
Ocotillo Plaza is the second project sold by the JLL team in the Ocotillo/Price Road corridor area in the past few months. Their other recent transaction was the sale of a single-tenant, Class A office building located on the Price Road corridor. That office building, which is fully occupied by Walgreens, sold during the first quarter for $16.7 million.