For more retail coverage, click GlobeSt.com/RETAIL.
TUCSON-An investment group from Newport Beach, CA has made its first acquisition in the city, paying nearly $16 million for Plaza Escondida, a 91,121-sf shopping center adjacent to the Catalina Foothills neighborhood. Plaza Escondida LLC, which owns four other retail centers in Arizona, acquired the center with a $12-million loan.
The buyer secured the 10-year financing for Plaza Escondida, a 15-year-old development at 7850 to 7972 N. Oracle Rd. from Morgan Stanley Mortgage Capital in New York City. The loan has an interest rate of 5.15% and a 30-year amortization.
"There were a lot of lenders that were interested because of the center's desirable location, tenant mix and strong sponsorship," says Timothy Storey of Newmark Realty Capital Inc.'s Phoenix office. "It's a very affluent area with a lot of upscale retail." The loan originator tells GlobeSt.com that Morgan Stanley was the most aggressive lender and had a previous relationship with the borrower. "The familiarity helped get the deal done," he explains, adding the borrower was able to lock in early on a fixed-rate interest.
The seller is a partnership, led by Robert Mariash of Phoenix, who had the asset listed with Cam Stanton of CB Richard Ellis Inc.'s Phoenix office. The is fully leased to a mix of local and national tenants. Its average rental rate is $14 per sf, triple net. The center is anchored by a 10,000-sf Trader Joe's, which has 11 years left on its lease. Storey says the Trader Joe's store is one of the chain's best-performing stores in the country with sales of $1,000 per sf.
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