Donahue Schriber's $50M Takes 99%-Leased Center

CHANDLER, AZ-In an off-market transaction, Donahue Schriber Realty Group Inc. has paid $50 million for the 99%-leased Casa Paloma shopping center. The seller was Los Angeles-based SCI Real Estate Investments LLC and 34 TIC owners, which bought the 130,096-sf asset in 2005 for $43.62 million.

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.