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CASA GRANDE, AZ-A 1031 exchange buyer from Valley Glen, CA has met the $11.2-million ask to take over a 93,852-sf retail asset from a pair of family trusts. The class B Casa Grande Shopping Center was 98% leased at sale time.
Mark Kaufman, buying as Kaufman Casa Grande-DE LLC, was up against one other investor for the 1346 E. Florence Blvd. property. The sellers--Collins Family Trust of Tiburon, CA and John Howard Cummings Jr. and Carol Ann Cummings Family Trust of Newport Beach, CA--owned the shopping center at least a dozen years, says Sanford Burstyn, a Phoenix director with Marcus & Millichap Real Estate Investment Brokerage Co.
The 20-year-old center sits on 11 acres at the intersection of Florence and Colorado boulevards. Its tenant roster includes Ace Hardware, Big 5 Sporting Goods, Payless Shoe Source and Hollywood Video. According to Burstyn, only two leases roll in the next two years.
Burstyn, the sellers' broker, says the asset offers a stable cash flow with future upside in rent growth. "The average rental rate for the area is $24 and this center is getting just $15 per sf so there's definitely some upside," he tells GlobeSt.com. "And, the main attraction is that the area is not over-retailed."
Casa Grande Shopping Center sits right in the middle of the dominant trade area for an agricultural city that's evolved into a bedroom community about 50 miles south of Phoenix. "It's a great location in a growing area," Burstyn says.
The buyer, who reinvested capital from a multifamily sale in California, will manage the center, but has hired Realty Executives of Phoenix to lease it. Howard Berger of Santa Monica, CA-based Berger Investment represented the buyer.
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