Los Angeles, CA – PSRS (Pacific Southwest Realty Services) a Southern California based commercial mortgage banking firm, recently closed an $11.25 million loan for a 90,626-sqaure-foot grocery anchored shopping center in Phoenix, Arizona. The center is anchored by a regional Hispanic grocer, El Super, which makes up approximately 50% of the center.  Originally built in 1979, and renovated in 2006, the center is in a densely Hispanic market, with a huge consumer base in the area.

There are 58 El Super locations in the Southwestern US, and 3 in the city of Phoenix. Some of the other 17 tenants in the center include, Walgreens, Payless Shoe Source, H&R Block, Subway Sandwiches, Hollywood Beauty, Rent-A-Center, and ACE hardware.

PSRS Principal, Kostas Kavayiotidis,  closed the fifteen-year no-recourse loan with a long time correspondent life insurance company.

The borrower is Red Mountain Retail Group, who’s portfolio encompasses 87 shopping centers with nearly 4-million-square-feet of commercial retail development. PSRS is one of the largest privately-held commercial mortgage banking firms in the Western United States. Their long-term lending relationships as a life insurance company correspondent allow access to diverse capital for commercial real estate and multi-family loans of all sizes, while in-house servicing provides customer service over the life of the loan.

The PSRS Team has funded a number of loans through various economic cycles and has a track record of closing loans on a timely basis

Red Mountain Asset Fund II, LLC, an affiliate of Red Mountain Retail Group of Santa Ana, CA (Michael Mugel, CEO) purchased the inline shops at Fry’s Gold Canyon Plaza, 3720 – 3780 West Ina Road in Marana for $4.45 million ($176 PSF). The property was 100% leased by multiple tenants including Peter Piper Pizza, Cato, Villa Mexican Foods and others.

The sale did not include the Fry’s store or gas station nor Discount Tire in the center. Buildings are located on lots 1 and 4 of Gold Canyon Plaza, totaling 25,250-square-feet of retail space (built 1984) on two pads with an aggregate of 1.8 acres.

This is Red Mountain’s second acquisition in the Tucson market. The company also owns the 190,854-square-foot Southgate Shopping Center, at the south-west corner of the I-10 Freeway and 6th Avenue in Tucson, Arizona.

Town West Realty II (James Horvath, President) was the seller having bought the property in 2011 for $3.45 million.

There were no brokers reported for the transaction, both parties were self-represented.

For leasing information at Gold Canyon or Southgate, contact Carol Harder at Red Mountain at (602) 977-9202.