Phoenix, AZ — NKF Capital Markets announces the sale of Prescott Gateway Mall located at 3250 Gateway Boulevard in Prescott. The ±318,503-square-foot, lifestyle center situated on ±37.92 acres was sold by T. Prescott AZ, LLC, a Texas limited liability company, to Prescott Gateway Mall Realty Holding, LLC, an Arizona limited liability company, for $8,800,000. NKF Capital Markets Executive Managing Director Thomas Dobrowski of the New York office and Managing Director David Guido of the Phoenix office aided both the buyer and seller in the transaction.
Prescott Gateway Mall is a modern (constructed in 2002/03) and highly-productive multifaceted retail center consisting of both an enclosed traditional mall and open-air lifestyle center. Approximately 75% occupied by notable tenants including Dillards, JC Penny and Sears in the enclosed mall, and open-air lifestyle tenants Bed Bath Beyond, Michaels, Cost Plus World Market, Pier One Imports, Texas Roadhouse and Wild Flower Bread Company. Additionally, the +40 inline tenants throughout the mall include Buckle, Chico’s, Maurices, Rue 21 and Victoria’s Secret.
“Prescott Gateway Mall and Lifestyle Center is a solid, value-add opportunity for the buyer, with steady performance over the past several years and retail mix of primarily national, credit tenants,” remarked Dobrowski. “The only shopping center within nearly 100 miles offering both an enclosed traditional mall shopping experience as well as an outdoor lifestyle and town center component, the mall functions as a community hub within Prescott, making the property an important part of many residents’ weekly community gathering routines. Further, there are many opportunities that may warrant higher rents and to draw alternative uses to the property, including office, medical office, and educational tenants, creating additional value for the new owner.”
Located approximately 100 miles northwest of Phoenix and 95 miles southwest of Flagstaff, the City of Prescott enjoys a favorable brand as an active, four-season recreation and vacation destination, and has received numerous awards and recognitions over the past decade. Named “One of the Top 5 Places to Retire” by Money Magazine, “One of the 100 Best Communities for Young People” by American Promise and a “Top 100 City to Live and Launch a Business” by Fortune Small Business, Prescott’s robust population growth has spurred new development and created a shortage of medical office in the immediate area.
Prescott Gateway Mall is located in the nexus of Prescott Valley’s retail hub at the intersection of Highway 69 and Prescott Lakes Parkway and is surrounded by first-class retail, restaurant and service tenants (Costco, Walmart, Lowe’s, Trader Joe’s, Best Buy, Red Robin, Olive Garden, In-N-Out, and US Bank), in addition to Prescott’s most prestigious and established residential communities and a growing retirement community.
“The new multiphase, multimillion-dollar retirement community, Touchmark at the Ranch, is located directly across from Prescott Gateway Mall,” added NKF Phoenix’s David Guido, who provided local market insight for the Prescott Gateway Mall sale. “The senior living community will ultimately consist of some 350 active single family and apartment homes, facilitating additional foot traffic as well as paving the way for the addition of new tenants at Prescott Gateway Mall, which offers a retailer mix that caters well to Prescott’s growing middle-class population and significant retiree base. I expect the demand for medical office space to increase greatly in the coming months and years, along with other services not currently found in the surrounding area.”