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PEORIA, AZ-A partnership comprised of five tenant-in-common investors from Los Gatos, CA has paid $7.54 million for 20,984 sf of small shop space and a 4,500-sf pad. The shop space and the pad site are part of the 88,484-sf, Albertsons-anchored Peoria Marketplace.
Peoria Marketplace, developed and sold by Gary Davidson of Phoenix, is located at the southwest corner of 75th Avenue and Cactus Road. It was completed in phases between 2002 and early 2004.
The TIC partnership obtained a $6.1-million loan from Toronto-based CIBC World Markets to acquire a portion of Peoria Marketplace. The 10-year loan bears a fixed interest rate of sub-5.5%. The terms include five years of interest-only payments, according to Donald Burnes, a senior vice president with Johnson Capital Partners of Arizona. "We negotiated with a very small group of lenders at the borrowers request because of time constraints," he tells GlobeSt.com.
Burnes says the TIC partnership had closed three other deals with CIBC World Markets. "For CIBC, they like Phoenix and they like retail," he says, adding the lender also was attracted to the center's age and location.
The TIC buyer's acquired space is more than 91% leased to 13 tenants, occupying 900 sf to 4,500 sf. The tenant roster includes Washington Mutual, Leslie's Pool Supplies, Subway, Panda Express, Quilters Bee, Post Net and Little Caesars Pizza. The center's space is on the market for $21 per sf to $26 per sf.
According to Burnes, the loan had a provision to hold back some funds until the remaining space was leased. The loan also included protection in case any tenant opted to exercise an early lease termination clause.
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