Blend of Traditional Retailers With Medical Tenants New Norm

The retail center is located on an outparcel of the Arrowhead Towne Center Mall.

GLENDALE, AZ— The Shops at Arrowhead Gateway benefit from a growing surrounding community that includes more than 287,000 residents and more than 119,000 households within a five-mile radius. The 35,684-square-foot retail center is located at 17560 and 17570 N. 75th Ave., on an outparcel of the Arrowhead Towne Center Mall . That proximity to nearly 300,000 residents gave the center an advantage and resulted in a recent sale to NLT Properties LLC of Las Vegas. The seller is FPWL Bell and 75th LLC, a Bainbridge Island, WA-based company. Steve Julius and Jesse Goldsmith with CBRE ‘s Phoenix office negotiated the $10.1 million transaction on behalf of the buyer. The seller was represented by Chad Tiedeman and Steve Underwood with Phoenix Commercial Advisors . “Arrowhead Gateway is a great fit for the purchaser’s goals. It allows them to diversify from their Nevada real estate assets, while successfully completing their 1031 exchange,” said Julius. “The location is excellent; the Arrowhead submarket will continue to flourish and see further rent growth.” Julius also points to the unique mix of service related retailers and medical users as a benefit to the property. These types of tenants are a boon to retail centers because they often invest more into the infrastructure, which makes them less likely to move. They lend stability and longevity for both landlords and the surrounding communities alike. “The blend of traditional, daily retailers and medical/health-related tenants is definitely becoming part of the ‘new normal’ of retail, particularly where neighborhood shopping and strip centers are concerned,” says Julius. “Healthcare providers and vendors are increasingly focused on becoming more accessible and convenient for their patients.” The mall-anchored property was 95% occupied at time of sale. The tenant roll includes Red Mountain Weight Loss, iRepair Plus, Salon Boutique, Merle Norman and other service related retailers, as well as a medical component with IMS Urologist, IMS Allergist, Noah’s Ark Pediatrics and Desert Valley Dental . Julius tells GlobeSt.com: “Arrowhead Gateway is a really a great mix of tenants: some medical, some retail and a very successful salon suites concept. The household density and proximity to other retail will continue to attract quality businesses.”