PHOENIX—Faris Lee Investments, a retail advisory and investment sales firm, has completed the $13.7 million sale of a two-building, NNN-leased retail property in Peoria. Situated on 5.12 acres and totaling 51,200 square feet, the property is fully occupied by LA Fitness, OfficeMax, Carter's, and Styles for Less. The asset is located within the 66-acre Peoria Crossings regional power center that is co-anchored by Target, Kohl's, Ross, Michael's, and Petco.
Jeff Conover, senior managing director with Faris Lee Investments, represented the Indianapolis-based seller, Peoria Crossings Development LLC. The San Jose-based 1031 exchange buyer, El Rancho Company, was represented by Brian Mason of Colliers International. The transaction closed at a 7.5 percent cap rate.
Conover tells GlobeSt.com, “Located in a secondary market near Phoenix, this property had a lot of the fundamentals investors are looking for: strong tenants, growing submarket, and of course, an ideal location with major retail anchors nearby. We garnered a total of seven offers on this asset from primarily California buyers seeking to place capital before year end.
“Faris Lee focused its marketing outreach for this quality asset by targeting buyers from California who are seeking higher yields on their investments,” says Conover. “Right now we're seeing retail investment opportunities in California become more competitive and cap rates falling below 5 percent. For this reason, we've worked strategically to move a tremendous amount of California-based capital out-of-state, into high-growth markets such as Arizona.” Conover adds that Faris Lee received multiple competitive offers on the property which sold for 99% of the asking price and at a strong price-per-square-foot of $268.
Built in 2007 and 2008, the property is located at 9320 W. Northern Ave. and 8170 N. 91st Ave. at the northeast corner of Loop 101 and Northern Avenue. More than 143,000 vehicles per day pass through the intersection. Additionally, there are more than 300,000 people and more than 70,000 daytime employees within the immediate trade area. Peoria Crossings is situated across the street from a proposed resort and casino which was recently approved for 225,000-square-feet of gaming, a hotel, restaurants and convention/meeting space.
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