MDC Property Services was one of seven prospective buyers for Ridgeview Plaza, which was 82% occupied during the marketing process. The Canadian firm made the highest offer, Cartledge says.

“Because of the uniqueness of the property – with Basha’s in bankruptcy and a 15,000-square-foot vacant space – buyers priced in varying risk premiums,” Cartledge explains. “From the low to high offer, the prices differed by 20%.”

MDC was willing to absorb the leasing risk with Ace Hardware, Cartledge notes, adding that the firm was “highly confident” it would be able to secure a tenant for that space. However, the sale was complicated by the fact that the seller, Scottsdale, AZ-based Bryan/Moore Development LLC was also in bankruptcy.

“MDC had to work through both Basha’s bankruptcy and the seller’s bankruptcy,” Cartledge says, adding that Ridgeview Plaza’s loan was maturing at about the same time Basha’s filed for bankruptcy, which made it impossible for the seller to refinance the loan.

MDC Property Services paid cash for Ridgeview Plaza, which is located at 2824-2910 Power Rd. In addition to Basha’s, the center is leased to Big 5 Sports, Starbucks, Leslie’s Pool, Chase Bank, among others.

“Ridgeview Plaza is a core retail center, and MDC anticipates that as the market heals, the shop space rents will rebound and they’ll get income growth there,” Cartledge says. “Plus, Basha’s has healthy rent increases. The center offers a blend between great intrinsic value and the potential to benefit from improving market conditions and an irreplaceable location.”