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PHOENIX-A 1031 exchange buyer from Monterrey, CA has made its first acquisition in the Valley, paying $2.9 million for the 10,000-sf Holland Boone Shopping Center.
The buyer of record, 15030 North Tatum LLC, purchased the five-year-old center from Scottsdale-based Daniel Boone Co, which had occupied 40% of the 15030 N. Tatum Blvd. property, according to Kevin Kopp, a broker with Lee & Associates Arizona. Kopp, Jan Fincham, Patrick Dempsey and Mark Linsalata represented the seller while John Mahoney of MTC Real Estate bargained for the buyer.
Kopp tells GlobeSt.com that Holland Boone Shopping Center received eight offers, all five to 10% less than the list price. "The buyer came in and made a full-price offer because he needed to get a property tied up because of the 1031 exchange," he explains.
The buyer assumed a $1.7-million loan through GMAC Commercial Mortgage to acquire Holland Boone Shopping Center. The loan is due in 2011 and has an interest rate of 7.9%.
The center, 85% leased, got a new tenant, Kid to Kid, to fill 2,800 sf with a long-term lease. Other tenants are Verizon Wireless and Smoothie King. "This is a good long-term investment with good rent roll with leases to 2010," Kopp says. The center's quoted rent is $22 per sf to $26 per sf.
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