PHOENIX—ORION Investment Real Estate facilitated the sale of Sunburst Plaza in Glendale located at the Southwest corner of 43rd Avenue and Bell Road in Glendale. The 103,000-square-foot shopping center sold for $9.3 million to Sunburst Station LLC, an entity affiliated with Phillips Edison & Company based in Cincinnati. The seller in the transaction was The Sunburst Plaza Company, LLC based in Beverly Hills. The anchor tenant occupying Sunburst Plaza is a 56,000 square foot Fry's Food Store (Kroger) that was originally developed in 1987. The grocery store has recently gone through an expansion and remodel over the last couple years in addition to adding a Fry's fuel pump pad.
The transaction was negotiated by Nick Miner and Andrew Harrison of ORION Investment Real Estate based in Scottsdale.
Additional tenants occupying the center include Epic Thrift, H & R Block, Just Brakes, Fresh Vitamins, as well as numerous local tenants. The grocery anchored center is located within an infill location on a major arterial road with traffic counts that exceed 55,000 vehicles per day at the intersection.
Miner tells GlobeSt.com, The submarket where the property is located has been around 10-11% vacant. The property we sold was 90% occupied at time of sale. The interesting thing to really note on this is the buyer has been focused on acquiring this asset for over two years. The challenge was the existing CMBS debt. The deal was structured so that when the prepayment penalty extinguished, the buyer was able to purchase it unencumbered. This is going to be the situation for many retail owners over the next three to four years.”
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