SCOTTSDALE, AZ-Whitestone REIT continues to expand its area presence, most recently acquiring the 118,730-square-foot Mercado at Scottsdale Ranch. The Houston REIT paid $21.3 million to seller Rassier Properties of Danville, CA, for the grocery anchored retail property.
Located at 10105 E. Via Linda, Mercado at Scottsdale Ranch is 93% occupied. Tenants include AJ's Fine Foods and Walgreens. According to Vizzda News, Whitestone paid approximately $10 million in cash for the property and assumed the remaining $11 million CMBS debt in care of US Bank as trustee. Vizzda notes that Rassier acquired the property as a TIC with two other investors in 2003 and was refinanced with $11 million in new debt with Goldman Sachs Commercial Mortgage Capital. The note was securitized, and though the property never was noticed for trustee sale, the note was assigned to special servicer LNR Partners.
According to Whitestone chairman and CEO James C. Mastandrea, Mercado at Scottsdale Ranch provides good value-add prospects, located as it is in what he terms a "densely populated, master-planned affluent community."
"Mercado is the primary shopping center serving the upscale Scottsdale Ranch neighborhood and the nearby Mirador and Ensenada del Oro neighborhoods," Mastandrea goes on to say. "The center was purchased below replacement cost at $179 per square foot, and serves an area with significantly higher annual total consumer expenditure per person than the broader Phoenix metropolitan statistical area. Furthermore, because 80% of the tenants at Mercado at Scottsdale are small shop and service businesses, Mastandrea says it fits Whitestone REIT's model well.
Whitestone now owns approximately 1.4 million square feet of gross leasable area in greater Phoenix through 16 assets and future development land parcels. These centers include:
- The Shops at Pecos Ranch
- Ahwatukee Plaza
- The Citadel
- Desert Canyon
- Fountain Square
- Gilbert Tuscany Village
- MarketPlace at Central
- Paradise Plaza
- Pima Norte
- Pinnacle of Scottsdale
- Shops at Pinnacle Peak
- Terravita Marketplace
- Village Square at Dana Park
Whitestone also has future development land parcels at Pinnacle of Scottsdale and Village Square at Dana Park.
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