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GLENDALE, AZ-After selling a retail asset in Northern California, a limited liability company has reinvested the funds into the 51,500-sf Brittany Square. The buyer closes the deal with $4.2 million down and assumes a conduit loan.
Using the deal for a Valley inroad, the Dobbins, CA-based Arizona Brittany Square LLC paid a grand total of $8.4 to Brittany Square LLC of nearby Scottsdale for the 6666 W. Peoria Ave. property. The buyer assumed assume a $4.2-million conduit loan with a 5.37% interest rate and 2008 expiration, Nicholas Miner, a senior sales associate with Eagle Commercial Realty Services, tells GlobeSt.com. The deal closed at a 7.38% cap rate.
"There were fewer buyers for this property because of the heavy down payment," Miner says. He says the new owner beat out four other prospective buyers due to the amount of equity that went on the table. "They were the most likely to close," he says, adding the buyer hopes to acquire additional retail centers in the Valley. Don Ellwanger of Sperry Van Ness' Sacramento office represented the buy side.
The nine-year-old Brittany Square is fully occupied by 19 national and local tenants. A 10,000-sf Hancock Fabrics anchors the asset. "There's some upside with the rental rates," Miner says, adding there's room to bump it 15% to 20%. Rents currently range from $10 per sf to $15 per sf, triple net.
Miner marked his first deal with Eagle Commercial with the sale. He and colleagues David Vermer and Bric Fraser, previously at Colton Commercial, recently moved to Eagle Commercial Realty to set up its brokerage arm. The plan is to add four more brokers in the near future, Miner says. Eagle Commercial manages more than three million sf of office and retail product in the Valley.
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