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TUCSON-A Sacramento, CA-based investor has completed a 1031 exchange, paying $8.2 million for Silverado Plaza, a 77,866-sf retail center along East Broadway Boulevard.
Phoenix-based BH2 LLC, a Barclay Holdings Venture, sold Silverado Plaza at 8740 E. Broadway Blvd., which originally was listed for nearly $8.8 million. Barclay is a well-known retail developer that has several other projects under construction in the Valley, says Jan P. Fincham of Lee & Associates Arizona's Phoenix office.
Situated on 7.6 acres at the southeast corner of Broadway Boulevard and Houghton Road, Silverado Plaza is 95% leased to tenants like Safeway Food & Drug, Blockbuster Video, Subway and Great Clips. Safeway Food & Drug, tied to a 20-year lease, occupies the 60,000-sf anchor spot.
Fincham tells GlobeSt.com that Silverado Plaza received 14 offers--primarily from private investment groups. The buyer of record, Silverado Plaza I & II, purchased the six-year-old center as a cash-flow investment. "Credit was a plus," he says, adding that many retail center sales do not include the grocery anchor because the retailer usually owns the store.
Silverado Plaza is the buyer's first acquisition in Arizona. "They sold out of a single-tenant retail asset in California," says Fincham, who teamed with Lee & Associates' Patrick A. Dempsey and Kevin P. Kopp to broker the deal. "They're trying to diversify out of California." He notes the buyers often vacation in Tucson and are familiar with the area.
Silverado Plaza I & II assumed an existing conduit loan, with eight years to go on the term, with RBS Greenwich Capital of Greenwich, CT, to acquire Silverado Plaza, which is located in a high-growth residential area with 22 housing developments clustered on the southeastern side of the city. According to Fincham, there is limited land available for future retail development. The surrounding area boasts an average household income of $72,000, he says.
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