SCOTTSDALE, AZ-The retail portion of one of the area’s largest mixed-use projects, The Promenade, has traded hands. Excel Trust Inc. acquired the 729,921-square-foot property (of which 433,533 square feet is owned) for $110 million.
The San Diego-based REIT bought the power center in an off-market transaction. The seller was a local investor. Lucescu Realty of Newport Beach, CA, facilitated the sale, which is one of the largest deals to close this year in the state.
The Promenade is Excel’s first acquisition in the Phoenix area, according to Mark Lucescu, president of Lucescu Realty. “They’ve identified Phoenix as a market that has bottomed and they want to be on the front-end of the recovery,” he tells GlobeSt.com. “They felt the timing was right.”
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Located on 51 acres at the intersection of Scottsdale Road and Frank Lloyd Wright Boulevard, The Promenade consists of more than 1 million square feet of retail and office space. The retail portion is anchored by Lowe’s (non-owned) and The Great Indoors (non-owned). Other big box tenants include: Nordstrom Rack; Trader Joe’s; OfficeMax; PetSmart; Old Navy; Michael's; Stein Mart; Cost Plus World Market; and Pier One Imports.
Built in 1999, the center’s design was inspired by Frank Lloyd Wright projects. The Promenade is about 97% leased, according to Excel Trust.
“The Promenade is an irreplaceable property with a strong tenant mix and track record of success,” says Gary Sabin, chairman and CEO of Excel Trust. “One of the primary reasons we moved forward with our recent equity offering was to capitalize on this attractive off-market opportunity.”
As part of the deal, the company assumed an existing mortgage of approximately $52.2 million, which bears interest at 4.8% and matures in 2015.
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