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SCOTTSDALE, AZ-A 1031 exchange investor from Eureka, CA beats out several other prospective buyers with a high offer of $3.4 million for Desert Fairways, a newly built, 9,700-sf retail center in the middle of a 100,000-sf office condo project.
SDRFC Investors LLC, headed by Jeff Boyd, acquired the half-leased center at 8763 E. Bell Rd. from local developer Shea Commercial LLC. It traded at a slight discount because it is only 50% leased, says Jamie Medress, an investment broker with Marcus & Millichap's Phoenix office. Medress and Steve Gonzalez represented SDRFC Investors, while Shea Commercial used in-house broker Neal Waldman to seal the deal.
"The buyer is taking on the leasing risk so he paid less," Medress tells GlobeSt.com. The only tenant is Oggies Pizza, which is operating in a 4,700-sf spot with a 10-year lease. The space in on the market for $27 per sf, he says, adding it's particularly appropriate for food or office services' retailers.
According to Medress, SDRFC Investors owns several other retail properties in Valley including one just three miles from Desert Fairways. "They're familiar with the area and like its growth," he says. The buyer traded out of several retail properties in California to complete the 1031 exchange.
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