Dirk Van Wyk, vice president for the Costa Mesa, CA-based buyer, tells GlobeSt.com that the acquisition price for the 16.6-acre center at 7131 W. Ray Rd. included the assumption of a $29-million loan with Charlotte, NC-based Wachovia Bank. He says the fixed-rate mortgage expires in 2015.
Van Wyk says the private REIT's upside lies in the upscale center's 30-tenant roster and infill location at Ray Road's junction with Interstate 10. "The attractive part really is the strength of the tenants and their sales," he stresses. "The upside is built into the contracted rent." He says the leases, most often five-year terms, carry annual rent bumps.
Van Wyk says Donahue Schriber's MO always includes sales volume as a buying barometer. "We look for strong anchor tenants doing strong sales volumes," he says, "but this is a combination of destination-type tenants with strong sales too."
The eight-year-old Casa Paloma is anchored by a 26,500-sf AJ's Fine Foods. The in-line roster includes Gap Women, Gap Body, Sur la Table, Banana Republic and Bath & Body Works while the prominent list of pad-site users includes Fleming's Steakhouse.
Van Wyk says Grubb & Ellis/BRE Commercial LLC will continue to lease the center. The quoted rate hovers $35 per sf triple net. Donahue Schriber, owner of eight retail properties in Greater Phoenix, will use its in-house team to manage the new prize. Preston Fetrow, senior vice president with CB Richard Ellis in Newport Beach, CA, brokered the talks, which got under way last May.
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