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PHOENIX-Working an all-cash sale with 1031 exchange funds, a national jewelry chain has purchased a 14,412-sf, class C shopping center for $1.2 million to get its first location in the Valley.
The Los Angeles-based Golden West Diamond Corp., plans to set up shop in about 2,000 sf of a 79%-occupied, 1970s-era center at 12644 N. 28th Dr., according to Steve Julius in the Phoenix office of Marcus & Millichap Real Estate Investment Brokerage Co. "They buy all of their real estate--that is their business plan," Julius tells GlobeSt.com. "They were also attracted to low price per sf. And, clearly, the buyer wasn't afraid of the vacancy because the chain will take some of the center." The jewelry store could open as early as July, he says.
Julius says the seller, GM Worsley of Phoenix, weighed six offers from private buyers, some of whom were planning to rehab Halle Square. The buyer, he adds, is keeping the center as-is, but has renamed it to Plaza 28.
The local seller leased 2,650 sf for storage, according to Julius, who partnered with Michael Hackett, also in Marcus & Millichap's Phoenix office, to sell the property. Julius says the center traded at a 6% cap rate. Most leases, he says, roll within two years. The open space is on the market for $9.25 per sf. The buyer, using 1031 exchange funds from a California retail sale, was represented by an adviser in the firm's Newport Beach office.
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