Search
 

California Buyer Stakes Eighth Valley Claim

PHOENIX-Local tenants and low operating expenses prove valuable selling points in the recent purchase of the 21,595-sf Cave Creek Plaza, a 96%-leased retail property in North Phoenix. The deal breaks down to $150 per sf, a relatively low price, the broker says.

By Lee Simmons | Updated on March 26, 2004

PHOENIX-An Encino, CA-based property manager has snapped up the Cave Creek Plaza shopping center in North Phoenix for about $3.3 million, citing local-credit tenants, low overhead and low rents all as catalysts behind the sale.

Aric Browne of Ethan Christopher LLC sealed his purchase of the 21,595-sf property from Matt Strauss and Marc Weiss, comprising Palms Desert Cave Creek LLC of Solana Beach, CA. “We’re seeing more demand for retail properties that don’t have credit in them,” Sanford Burstyn of Marcus & Millichap tells GlobeSt.com. “The supply of shopping center product collectively is low and demand is high so options are limited. As well as these sorts of properties have done over the last 10 years, that has reduced the perceived risk from investors.” Burstyn represented both parties in the deal.

Located at 2321 E. Bell Road, the two-acre Cave Creek Plaza was built in the late 1980s and is anchored by a 99 Cents Only Store and Osco Drug, both of which were not included in the sale. The purchase brings to eight the number of deals purchased by Browne in the last year, who now has more than 700,000 sf of leaseable space in Phoenix. An acquisition loan was arranged at about 75% of the total value, though terms were not disclosed. The deal broke down to about $150 per sf–a relatively low price for retail centers, says Burstyn.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.