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SUN CITY, AZ-A Los Angeles-based investment group has made its first buy in the Valley, paying $10.1 million for the Promenade, a 70,719-sf shopping center at the intersection of 99th Avenue and Bell Road.
Namco RP Financial bought the 21-year-old center at 10001 W. Bell Rd. from Promenade Associates LLC, a joint venture headed up by Santa Monica-based Macerich Co. The 70%-leased center, listed for $11.3 million, received more than eight offers during a two-month run on the market, Kevin Kopp, a broker with Lee & Associates Arizona Inc., tells GlobeSt.com.
The center's seven-acre foothold in a submarket with a lack of developable land and high visibility along the heavily traveled Bell Road accounted for the high interest from investment circles, Kopp says, adding all offers were in the same price range. "The buyer distanced himself from the others by his terms and conditions," he says. "The ability to close was an important factor to the seller."
Lee & Associates' Patrick Dempsey says the Promenade offers a value-add opportunity for the new owner. "They'll be able to increase cash flow within the next year or two with an aggressive lease-up strategy," he explains. The space today is quoted at $14 per sf to $16 per sf, full-service. "We think it will lease up quickly."
Namco, which put a new loan on the property, will handle leasing and management internally, according to Dempsey. The Lee & Associates' sales team included Jan Fincham.
Anchored by an 8,400-sf Van's Pro Shop, the center houses a mix of national and local tenants. Other tenants include Harris Trust, Eagle Home Mortgage, Hi-Health and Merle Norman.
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