TUCSON, ARIZ. & NEWPORT BEACH, CALIF. – Mark Lucescu, President of Lucescu Realty, announced the sale of Campbell Plaza Shopping Center in Tucson, AZ for a total consideration of $33.0 Million.
Lucescu Realty exclusively represented the interests of the seller, The Krausz Companies, and procured the buyer.
The Krausz Companies is a privately held Investment, Development and Management Company, headquartered in San Francisco, California. Krausz specializes in the acquisition, development and management of high quality, well-located retail, office, industrial and mixed-use properties throughout the United States.
The Buyer was an affiliate of DSW Commercial, a privately held, full service, Investment, Development and Management Company, headquartered in Tucson, Arizona.
Campbell Plaza is a 190,022 SF community shopping center, anchored by Albertsons, Ross Dress for Less and Ace Hardware, and also includes an approximate 28,000 SF single-story, office component.
Albertsons, which is the second largest supermarket chain in North America with over $60 Billion in Annual Sales, has been operating at the Property for nearly 25 years and just exercised an option to extend their lease term. The Offering presented a rare opportunity to acquire a Seasoned, Grocery-anchored, Shopping Center situated on one of the largest assemblages (nearly 17 acres) of commercial land along the Campbell Avenue Corridor, approximately 1 mile north of The University of Arizona.
In addition to Albertsons, Ross Dress for Less and Ace Hardware, the blue-chip tenant roster featured many of the largest and most credit worthy retailers in the country, including Old Chicago, Five Guys, Panda Express, Yogurtland, ATI Physical Therapy, Rubio’s Fresh Mexican Grill, GNC, T-Mobile, GameStop, Jamba Juice, and others. 93.78% of the leased Retail GLA is occupied by National and Regional tenants that account for 87.41% of the Total Annual Rent.
“It’s an institutional-quality center located in a very dense, infill location with very high barriers to entry. It would be almost impossible to assemble 17 acres of land within that trade area today. And even if you could the costs would be significantly higher than the purchase price” noted Greg Wendelken, Managing Director of Lucescu Realty’s Phoenix, AZ office, who also was involved in the transaction. “The Seller did a great job of owning, managing and leasing the center and the Buyer, with its local experience and expertise, should continue that success”.
According to Lucescu in discussing the latest market trends, “We expect well located, urban shopping centers, in strong infill locations to continue to command very high investor demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings. Urban areas in major MSA’s are highly coveted; however, we also anticipate properties with similar fundamentals in some of the smaller MSA’s throughout the western U.S. to also continue to be highly sought after as well.”
About Lucescu Realty
Lucescu Realty is a market leading investment real estate services firm. Scope of services include sale transactions, advisory/consulting, debt/equity placement, property / asset management, market research and financial services.
Lucescu Realty specializes in individual property and portfolio transactions, on behalf of public and private companies worldwide, involving neighborhood, community, power, and lifestyle centers, regional malls, and suburban and central business district office buildings.
Headquartered in Newport Beach, California, Lucescu Realty has regional offices in Phoenix, Arizona and Las Vegas, Nevada and plans to open an office in San Francisco later this year.
For more information, please visit www.lucescurealty.com.