Phoenix, Arizona — Newmark announces it has completed the $6.25 million sale of Plaza 59, a 32,128-square-foot multi-tenant shopping center in Phoenix, Arizona. Newmark Senior Managing Directors Steve Julius and Jesse Goldsmith and Director Chase Dorsett represented the seller, Plaza 59, LLC (a Scottsdale-based private investor) in the trade to buyer 33rd Ave & Indian School Rd Pros RE, LLC. This represents the Newmark team’s second transaction working with the seller on this property.
“We helped our client purchase this property off-market in May 2020, during the thick of the pandemic and government shutdowns,” said Dorsett. “While some investors sat on the sidelines during this time period, our client had a vision to reposition this property and was willing to take on risk during an extremely uncertain time in the retail market.”
In the two years since purchasing Plaza 59, the seller made numerous capital improvements in addition to filling several vacancies.
“Our team was pleased to help successfully capitalize on this value-add opportunity for the client,” said Goldsmith. “The buyer was attracted to the dense, infill location, high traffic counts, and neighborhood-oriented tenant mix.”
At the time of sale, Plaza 59 was 95% leased to 20 seasoned tenants, many of whom have been in place long-term. Tenants at Plaza 59 benefit from a monument sign, lighted intersection, unobstructed visibility, and over 71,000 cars per day at the intersection. The property features a classic, L-shaped building layout with ample parking.
Located just west of downtown Phoenix, Plaza 59 is conveniently positioned between the two major interstate highways that cut through the metro area. The location also offers easy access to Sky Harbor International Airport, which is a 15-minute drive southeast. The intersection of Indian School Road and 59th Avenue is also home to Grand Canyon University Championship Golf Course, and within one mile of the property are several big box retailers, including Walmart Supercenter and Ross Dress For Less; multiple fast food restaurants such as McDonald's, Wendy's, and Panda Express; and Maryvale High School with a student population of 2,800.
Across the U.S., retail investment activity recovered substantially during the first quarter of 2022, according to Newmark Research. National retail sales volume increased 102.3% year-over-year to $18.6 billion, the strongest first quarter in five years. In addition to early pandemic favorites such as grocery-anchored retail, other retail segments such as strip centers have attracted investor demand in 2022. Overall consumer willingness to shop in stores has increased as COVID-19 restrictions are lifted across the country and foot traffic is being aided by trends such as “buy-online-pick-up-in-store".