Phoenix-based Kornwasser Shopping Center Properties LLC purchased the 40-acre parcel at the southwest corner of Lake Pleasant Parkway and Happy Valley Road from Mehrob LLC of Phoenix at just below the $10-million ask. The developer plans to begin construction in the fall.
Kornwasser immediately sold a tract to the Minneapolis-based Target Corp. for a 173,000-sf superstore. With the Target deal and other commitments, Larry Ortega, senior vice president of Colliers International Inc.'s Phoenix office, says "the center is about 85% preleased." He and Colliers' Danny Ortega handled the land sale and are preleasing the balance of the development, which calls for a 209,000-sf center beside the SuperTarget.
Larry Ortega points out lease commitments have been obtained from Bed, Bath & Beyond, to the tune of 28,000 sf and Shoe Pavilion for 20,000 sf. "We have another co-anchor apparel we'll be ready to announce in about a week that will commit to about 30,000 sf," he tells GlobeSt.com. Added to that, he says, are mini-anchors with letters of intent for another 30,000 sf.
Gordon Keig, Kornwasser's vice president, isn't surprised that Lake Pleasant Pavilion has attracted such phenomenal interest. "This is an area in which there is a great deal of population and is growing rapidly," he says. "There are lots of nice new houses selling well in the area, which means a lot of customers with disposable income." Lava Architecture in Phoenix will design the structure. A general contractor has yet to be named.
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