"This is an in-fill sight with very strong demographics," Colliers International broker Larry Ortega tells GlobeSt.com. "It's a very visible site along the Camelback Corridor and the largest remaining parcel on Camelback."
The eight-acre parcel, located at the northeast corner of 16th Street and Camelback Road, drew the interest of at least 10 bidders before it was sold in December to Orix Alliant for $10 million. The transaction was one of the highest priced land deals in the valley, Ortega said.
The buyer later sold 3.5 acres to Circuit City for a bit more than $5.1 million. The Richmond, VA based electronics giant plans to build a 33,249-sf electronics store on the parcel. The new store will be Circuit City's first in central Phoenix, Ortega said.
Originally owned by Marriott Corp., the land was put on the market after the Sept. 11 terrorist attacks created a sharp downturn in the economy. The hotel giant scuttled plans to build a Residence Inn and a Springfield Suites on the site.
Marriott's change of plans was seen as an opportunity by several retailers, including Target, which expressed interest in the parcel. The hotelier selected Orix Alliant from a roster of potential buyers primarily because of its ability to close the deal, Ortega noted.
Orix Alliant plans to construct a 14,375-sf Eckerd drug store on the property along with about 20,000 sf of additional retail space. The Mexican restaurant Chipotle and a coffee shop known as Coffee, Tea & Bean have already signed on as tenants. Ortega said the buyer also is negotiating with two banks and several wireless firms.
Ortega handled the land transactions for Orix Alliant. Marriott Corp. was represented in the transaction by Art Cunningham with Cunningham Real Estate. Greg Laing, with Phoenix Commercial Advisors represented Circuit City in that land purchase.
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