SCOTTSDALE, AZ-Following an 11-year ownership stint of Grayhawk Plaza, Phoenix-based Pederson Group sold the 147,084-square-foot, Bashas-anchored retail property to Scottsdale Grayhawk Center LLC of New Mexico. Pederson Group, which developed the asset, collected $36.9 million from the CRE transaction.
Located at the southwest corner of Scottsdale Road and Grayhawk Drive in North Scottsdale, Grayhawk Plaza is one of a few retail properties in this submarket. Pederson, a well-known area shopping center developer, brought Grayhawk Plaza online in 2001.
"It's challenging to get any kind of commercial zoning in North Scottsdale," comments CBRE's Glenn Smigiel, who worked with colleagues Bob Young, Steve Brabant, Rick Abraham and Nancy Romanovsky on behalf of the seller to dispose of the retail asset. "North Scottsdale has a strong homeowners' association that fights tooth and nail against commercial development."
Smigiel tells GlobeSt.com that the struggles to commercially develop properties in the North Scottsdale submarket was the reason why Pederson opted to keep three pads developed in conjunction with the center itself rather than selling them off. The pads contain a Chase bank, Circle K and Walgreens. "You don't find many properties with all pads included in the sale," Smigiel comments. "That's kind of a rarity."
He goes on to say Pederson felt the time was right to unload the 90%-occupied Grayhawk Plaza because of the huge demand for quality commercial real estate in the region. "They felt they were able to capitalize on the value of the marketplace right now," Smigiel says. "They'll take the money and redeploy it in other projects in the Phoenix area."
Grayhawk Plaza attracted 20 bonafide offers during the offering process, with the New Mexico buyer beating the competition by offering all cash and a quick close. "Those are two important concepts; all cash, quick close," Smigiel adds. "It's what sellers like to hear."
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