SIERRA VISTA, AZ-A 28,780-square-foot, shadow-anchored retail center here has sold for $276 per square foot – one of the highest prices in the state.
The buyer, a high-net worth individual from Seattle, paid $7.98 million for the property, which was developed by Sandor Development. The Phoenix-based company sold the center, dubbed Wal-Mart Plaza, in an all-cash transaction at a cap rate of 7.6%.
Located at the intersection of Highway 90 and Martin Luther King Boulevard in this tertiary market about 90 minutes southeast of Tucson, the center is shadow-anchored by a Wal-Mart Supercenter and a planned Sam’s Club. It was completed just five months ago.
“This deal proves that investors are still willing to pay aggressive prices for really high quality real estate – properties that are newly constructed and leased to credit tenants,” says Michael Hackett, a senior vice president with Cassidy Turley/BRE Commercial. He negotiated the sale, along with Ryan Schubert, also a senior vice president with Cassidy Turley/BRE Commercial.
The center was 94% occupied at the time of sale. Roughly 70% of the tenants are national credit retailers and restaurant chains including Verizon Wireless, Olive Garden, Nationwide Vision, GameStop, Chipotle, Great Clips and Panda Express.
Hackett tells GlobeSt.com that the center received four offers during its 30-day marketing period. “There are very few properties with rent rolls this good,” he contends. “The buyer can feel confident the tenants are going to perform well and do good business because they signed on paying late 2010 rental rates.”
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