PHOENIX—Tempe-based Hudson Retail Center, LLC has sold two single-tenant, net leased investment properties in Tempe to Rosebud Tempe One, LLC of Palm Beach. The transaction included a free-standing, single-tenant Target and US Bank at the northeast corner of McClintock Drive and Baseline Road. The properties are located on a 10.02-acre corner parcel and sold for $11.9 million.
Joseph Compagno with CBRE's Phoenix office represented both the buyer and the seller in the transaction.
Comagno tells GlobeSt.com, “This transaction speaks to the incredible demand for stable investments; it's difficult to find this type of investment. It's a rare offering.
“Our net lease investment team continues to see a significant demand from investors for this type of real estate. These investors are looking for less management intensive properties, best-in-credit tenancy and stable cash flow,” adds Compagno. “This was a highly sought after investment. It's an incredibly rare piece of real estate to acquire, because Target owns the majority of their real estate. We generated fifteen offers through our aggressive marketing campaign and the property sold at list price.”
Geoffrey Harris, also with CBRE's Phoenix office, arranged acquisition financing for the purchase. The three and a half year bank loan totaled $7.8 million with an interest rate of 2.91 percent and 25-year amortization.
The investment consists of triple net leases with Target Corporation and US Bank. Target has occupied their building since 1988, their building was constructed in 1974. The property is strategically located in a densely populated area that is home to approximately 157,465 residents in three miles and 353,705 residents within a five mile radius. The area also boasts a large employment center with approximately 160,000 jobs within three miles and 515,083 jobs within a five mile radius. Major employers in the area include Intel, Arizona State University and Maricopa Community Colleges, among others.
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