PHOENIX- A group of friends and family from Northern California pooled their money to buy a newly constructed retail center for $5.5 million from the developer WE Tatum LLC.

At close, the 19,000-sf Tatum Ranch was not yet stabilized, says Ryan Schubert, a senior associate with Grubb & Ellis/BRE Commercial LLC who represented the seller along with Brian Kocour and Greg Valladao. "It was about 75 or 80% leased and the buyer bought it based on stabilized income," Schubert tells GlobeSt.com about the 29850 N. Tatum Blvd. property. "In this market people are willing to pay for income that's not there because of the long-term value."

The center is positioned in Cave Creek, a growing residential suburb. Schubert says the buyers were attracted to the center because of the area's growth potential. In fact, Tatum Ranch is the second asset acquired by the same pool of buyers. "There is little or no vacancy in retail," he says. "In three to five miles the vacancy is less than 1%." A grocery-anchored center is across the street from Tatum Ranch Shopping Center, as is a Walgreens and Blockbuster Video.