The plaza is approximately 95% occupied. The center is anchored by the 48,000-square-foot Phoenix Ranch Market, which Pro's Ranch owns and operates. The Southern California company has a chain of 11 supermarkets in California, Arizona, New Mexico and Texas that cater primarily to a Hispanic clientele. It has five outlets in the Phoenix area, as well as a Mexican restaurant called Tradicciones.
The Provenzanos have indicated they plan to use the proceeds of the sale to develop additional supermarkets and supermarket-anchored retail centers, including two new markets in the Phoenix area. A 45,000-square-foot store is scheduled to open soon at the 132,000-square-foot Winsor Ranch Shopping Center at 35th Avenue and Glendale Avenue in Glendale. Zell Commercial Real Estate Services in Phoenix has the leasing assignment for both Glendale projects.
The deal mark's Sarofim's second investment in the greater Phoenix market. In 2005, the company paid $38.5 million, or $124.28 per foot, to buy the 330,976-square-foot Desert Palms Power Center at 40th Street and Thomas Road in Phoenix. The deal includes assumption of an original $9 million loan issued in 2005 by Credit Suisse First Boston.
Sarofim, which manages closed-end co-mingled funds, has a portfolio of office, retail, multifamily and industrial assets in more than 20 states. It is a wholly-owned subsidiary of Houston-based Fayez Sarofim & Co., a privately-owned investment manager with $21 billion in assets under its management at the end of 2008. Sarofim Realty Advisors is currently seeking acquisition opportunities for three funds and has targeted the Phoenix area for additional investment.
The transaction was brokered by Ryan Schubert and Michael Hackett of Grubb & Ellis/BRE Commercial in Phoenix.
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