PHOENIX—The South Mountain Crossing shopping center at 3636 W. Southern Ave. in Phoenix, sold for $11,172,825, or $84 per square foot in an all cash, value-add investment sale.
The transaction includes the 132,314-square-foot shopping center space, 4 developable pads and a 6.6 acre parcel for future retail development. Lee & Associates Arizona Fincham/Dempsey Investment Team, led by principals Jan Fincham and Pat Dempsey, facilitated the transaction on behalf of both the owner, RN South Mountain Properties, LLC and the buyer, South Mountain Retail, LLC.
Fincham tells GlobeSt.com, “It's a changing submarket. The Phoenix city council has been trying to enhance development in South Phoenix; that area really suffered during the Great Recession. Residential waned during the crash, but the area is redeveloped, it's backfilled with tenants, the residential has come back, there is a lot of activity and a retail vibrancy here.”
RN South Mountain Properties, LLC originally purchased the property in February 2012. At the time, the property was a failed development project that included what was to be a Mervyn's-anchored shopping center. However, Mervyn's declared bankruptcy and the project failed. RN properties back-?lled the former Mervyn's building with a Goodwill store and a Cal Ranch Store, a 20-store ranch and home chain from Boise, Idaho. In addition, the RN properties group recently negotiated a to-be-built McDonald's on a ground lease on the hard corner as well as a new Filiberto's restaurant.
Built in 2007, the shopping center is nearly 80 percent occupied and has the additional 6.6 acres of excess land which is entitled for an additional 61,788 SF of building space. The entire property sits
on 25.6 acres. The center is located in the Laveen area of Southwest Phoenix and is bounded by major arterial corridors such as Southern Ave., 35th Ave. and is close to Interstate 10.
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