Vestar, one of the largest privately held retail real estate companies in the western United States, and AEW Capital Management (AEW) have partnered to acquire Tempe Marketplace for $367 million. Vestar previously owned the 1.3 million-square-foot, open-air retail center with Rockwood Capital, LLC (“Rockwood”) which is exiting its investment after a five year hold. AEW acquired the property on behalf of the AEW Core Property Trust.
“We have a great long-standing relationship with AEW and are excited that their vision for Tempe Marketplace matches ours,” said Rick Kuhle, Vestar Chairman and CEO. “Rockwood has been an exemplary capital partner for us. We look forward to working with them on future ventures.”
“We are excited about the investment as we believe the center will continue to benefit from the nearby Arizona State University campus, as well as State Farm’s move of approximately 7,000 professionals to a property that is adjacent to Tempe Marketplace,” said Dan Bradley, Senior Portfolio Manager for AEW Core Property Trust. “We are also thrilled to partner with Vestar who we believe is a best-in- class operator.”
“Rockwood and Vestar have enjoyed an outstanding relationship, partnering on Tempe Marketplace and three additional joint ventures over the past several years,” said Joel Mayer, Rockwood Managing Director. “We will continue to pursue new opportunities with Vestar in the future.”
Vestar opened Tempe Marketplace in 2007 and Rockwood Capital joined as a joint venture partner in 2010. The center offers strategically integrated shopping, dining and entertainment in a festive, pedestrian-oriented village town center environment. Tempe Marketplace is fully occupied and recently welcomed several new tenants including: F21 red (Forever 21’s newest concept store), H&M and Nordstrom Rack.
“Vestar continues to be committed to the success of Tempe Marketplace with AEW as our partner,” said David Larcher, President of Vestar. “We will continue to focus our efforts on increasing the productivity of the center and providing an exceptional customer experience.”