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TUCSON-Rita Ranch I LLC, a private investor from Los Angeles that owns several other assets in the Valley, has paid $11.9 million for Rita Ranch, a 71,881-sf, Safeway-anchored center. The sale also includes three developable pads valued at $1.3 million.
Nexus Valencia Retail LLC, a Phoenix-based development group, sold Rita Ranch, which was originally listed for close to $13.8 million. "Normally they hold their assets, but they will (use the sale proceeds) for future land acquisitions," says says Jan P. Fincham of Lee & Associates Arizona's Phoenix office, who brokered the deal along with partners Patrick A. Dempsey and Kevin P. Kopp.
"The buyer liked the fact that the Safeway was included in the sale--making it more a credit investment opportunity to go along with the stability of cash flow," Fincham says. He points out many retail center sales do not include the grocery anchor, which usually are corporate-owned locations.
Fincham tells GlobeSt.com that Rita Ranch received more than 10 offers--primarily from private investment groups. He adds that the investment will offer additional upside with the pad build-outs. Situated on 9.2 acres at the southwest corner of Nexus and Valencia roads, the five-year-old Rita Ranch is 95% leased to tenants like Blockbuster Video, Subway, H&R Block and the UPS Store.
The limited liability company assumed an existing conduit loan to acquire Rita Ranch, which is located in a high-growth residential area on the southeast side of Tucson. The surrounding area boasts an average household income of $74,000, Fincham says.
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