Newmark Knight Frank (“Newmark”) announces it has completed the sale of two grocery-anchored retail centers in Phoenix for a combined total of $14 million.
Newmark’s Senior Managing Directors Steve Julius and Jesse Goldsmith along with Associate Director Chase Dorsett facilitated the transactions.
“Retail has rebounded strongly in Phoenix. Investors are particularly attracted to daily-need retailers – coined as “essential businesses” in the pandemic. Therefore, a shopping center next to a busy grocery store that includes tenants like restaurants, hair/beauty/nails, medical and other services are in high demand,” said Julius.
The first property, Safeway Shops at 83rd & Camelback, is a multi-tenant retail center located at 4819 N 83rd Avenue and 8141 W Camelback Road. The property is 100% occupied to a strong tenant mix including H&R Block, Great Clips, One Main Financial plus a local donut shop, dentistry office and Mexican restaurant. Newmark represented the seller, Boros Investments, LLC, and the buyer, Reel Retail Fund I, LLC, a Southern California-based investment group adding to its Arizona real estate portfolio
The second property, Happy Valley Walmart Shops located at 25155 N 67th Avenue & 6520 W Happy Valley Road, is a similar multi-tenant retail center with shops on either side of a Walmart Neighborhood Market, Walmart’s grocery-only concept. Tenants include Pacific Dental, Edward Jones, a bagel shop, bike store and sushi restaurant. The buyer was Desert Canyon Investment Properties III, LLC, a small partnership in a 1031 tax-deferred exchange from the sale of an apartment complex in Texas. Newmark represented the seller, BevNorm Olive, LLC.
Goldsmith added, “We are seeing a noticeable uptick in buyer demand, offers, and out-of-state investor visits to Phoenix and have recently toured seasoned, experienced investors from Dallas, Cincinnati, Denver, Fort Lauderdale, New York, Atlanta, and of course, Southern and Northern California, many of them looking to make their first purchase in Phoenix.”
Julius, Goldsmith and Dorsett have been active as of late, completing ten transactions year-to-date with 12 properties under contract, further confirming Metro Phoenix’s strong fundamentals, the rebound of the retail sector and expected growth for the market.