JLL brokered the sale of the retail property to North American Development Group
PHOENIX, Arizona– JLL Capital Markets has closed the $84 million ($117 PSF) sale of Tucson Spectrum, a 716,704-square-foot, Class A, market-leading, grocery-anchored retail center situated in an infill location in Tucson, Arizona.
JLL represented the seller, Retail Value Inc. (RVI). North American Development Group, the Investor, was self-represented. RVI holds assets in the continental U.S. and Puerto Rico and is managed by subsidiaries of SITE Centers Corp. (formerly known as DDR Corp.). RVI focuses on realizing value in its business through operations and sales of its assets. Additional information about RVI is available at retailvalueinc.com.
Tucson Spectrum was 88% leased at time of sale to a diverse slate of market-leading tenants, including Harkins Theatres, Food City, Bed Bath & Beyond, Ross, Marshall's, Best Buy, Michael's and Old Navy. Completed in 2001, the center is shadow anchored by Target and The Home Depot. The center is positioned at the intersection of West Irvington Road and Interstate 19, exposing the center to approximately 126,000 vehicles a day. As the only complex, large scale retail center with nationally recognized tenants for 15 miles on Interstate 19, Tucson Spectrum serves an expanded trade area that includes an estimated 541,000 residents within a 10-mile radius. The property is seven miles from the 45,000-student University of Arizona and is less than an hour from the most trafficked port of entry into Arizona.
The JLL Capital Markets team representing the seller was led by Managing Directors Bryan Ley and Patrick Dempsey, Senior Director Ryan Fitzpatrick and Associates Tony Ensbury and Jason Carlos.
“This successful transaction demonstrates the capital formation occurring for retail right now and that there is robust demand from buyers for best-in-class, large-scale retail power centers that offer investors attractive risk-adjusted returns,” Ley said. “Retail is very much alive and well located, high productivity shopping centers will always have demand, from tenants and Investors alike. Centers like this with more than 88 acres of land also give buyers multiple future exit strategies and is why we saw significant interest in the deal from institutional and private Investors.”
“Investors are attracted to retail properties in Arizona due to the state’s strong demographic trends and continued population and employment growth, which should support rising retail property values in the near term,” Dempsey added. "The investors were equally attracted to the upside potential of the vacant pads behind property."
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
This is the first acquisition for North American Development Group (“NADG”), founded in 1977, it is a full-service real estate platform with over $5 billion of assets under management. NADG has been active in the acquisition, development, redevelopment and management of over 250 shopping centers, mixed-use developments and residential communities comprising well over 35 million square feet across Canada and the United States. NADG operates within five distinct platforms; NADG Retail, NADG NNN Reit, NADG Residential, NADG Land Development and in Canada, CentreCorp Management Services. NADG’s team of over 250 professionals are in 11 offices across North America, 6 in Canada and 5 in the United States. Additional Information about NADG can be found at nadg.com.
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