Newmark Knight Frank (NKF) announces the $2.2 million leasehold improvement sale of Pierce Plaza, a retail center at 2303 North 44th Street in Phoenix, Arizona. NKF Senior Managing Directors Steve Julius and Jesse Goldsmith and Associate Chase Dorsett represented both the seller, Joann J McMichael Revocable Trust, and the buyer, Arileus Capital, LLC, in the sale of the 24,925-square-foot neighborhood retail center. Pierce Plaza is located on land owned by a local family trust. While under contract, Arileus Capital executed an option agreement with the land owner to purchase the land in the future.
“With the visibility offered by the high traffic count on 44th Street (over 50,000 cars per day) and the surrounding neighborhood growth, this retail center is poised for long-term success,” said NKF’s Julius. “Retail center transactions continue to move forward as we navigate COVID-19 and we were thrilled to be able to complete a deal that works for seller and buyer. The buyer intends to add value initially through a property facelift.”
“While transparency and teamwork are vital to every successful transaction, they are even more important in today’s challenging market. Together, with seller and broker, we worked synergistically to get this deal done,” said Phil Guida, Co-Founder and Principal of Arileus Capital. “Pierce Plaza presents attractive fundamentals, strong traffic counts, visibility and thriving shadow anchors. The intrinsic value of the real estate, along with our plans to enhance the property, will generate demand from a wide array of tenants.”
The buyer will work closely with the City of Phoenix and the Camelback East Village Planning Committee to ensure the quality of the retail asset and tenancy best serve the growing submarket.
Located on the northeast corner of 44th and Oak Streets, the center is directly in front of Costco and Arcadia Crossing–which includes a Fry’s
Food, Target and dozens of national retailers. The 44th street corridor continues to grow both commercially and residentially. QuikTrip recently purchased a site across the street from the property and has plans for a new gas station/convenience store, a 276-unit multifamily project is in late stage development and a 44-townhome community is nearing completion just south of the site.
According to NKF Research, this is the fifteenth retail center over 10,000 square feet to trade since Phoenix’s stay-at-home order was issued in response to the COVID-19 pandemic. Transactions completed by the Julius, Goldsmith and Dorsett team represent a 33 percent market share of those sales.