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| Christopher Tramontano |
IRVINE, CA– Faris
Lee Investments has completed the $22 million sale of Watson Marketplace, a
fully leased, 90,000-square-foot retail center located in Buckeye, Ariz., a
growing submarket 30 minutes west of
Phoenix.
Chris Tramontano, Matthew Mousavi, and Patrick Luther
of Faris Lee Investments represented the seller and developer of the property,
Scottsdale-based Desert Troon Companies.
Chris Tramontano and Tom Chichester, also of Faris
Lee Investments, represented the all-cash buyer, San Diego-based Interstate
Holdings, who was in a 1031 Exchange. The transaction closed at a 6.8 percent
cap rate.
The transaction
included 55,153 square feet of property on nearly eight acres that is leased to
15 national credit and regional tenants including the anchor, Goodwill, along
with Denny’s, The UPS Store, Dunkin Donuts with drive-thru, and Firehouse Subs
in seven separate free-standing pad buildings.
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| Matthew Mousavi |
It also included two retail pads ground-leased to a
5,250-square-foot McDonald’s, which is on 1.22 acres, and a 4,583-square-foot
Bank of America, which is on 1.0 acres.
“Faris Lee
implemented a break up strategy for the property,” stated Tramontano.
“Marketing the anchored portion of the center and the two
ground-leased retail pads individually would maximize value and meet the
seller’s objective of selling the entire project this year.
“We secured several strong offers, particularly for the
McDonald’s and Bank of America pads, which were in the low 4 percent cap rate
range. However, the San Diego buyer required a larger transaction as part of
the upleg of its 1031 Exchange.
“Because of this, we negotiated an attractive, all-cash
offer with an aggressive blended cap rate for the entire center. The seller
benefited from a short escrow term, and the buyer’s acquisition requirements
were met.”
 |
| Patrick Luther |
Tramontano added that Faris Lee aggressively marketed the
property to its proprietary investor database with a particular focus on
outreach to California buyers.
“The pent up demand from capital in the state of California
is astounding,” he said. “With competition fierce and price-per-square-foot
levels at historical highs for California assets, investors are seeking
out-of-state opportunities in growing markets.”
Located at 441 - 733 S. Watson Road, Watson Marketplace is
ideally positioned within the major retail corridor along S. Watson Road, which
features a large monument sign at the on/off ramp to Interstate 10 – the main
artery leading to and from Phoenix.
Additionally, the property is situated across the street
from Sundance Towne Center, consisting of many high profile tenants including,
Lowe’s, Walmart Supercenter, PetsMart and Walgreens. The City of Buckeye is in
a strong growth mode as the economy recovers and currently has more than $1
billion in public and private projects under construction or planned in the
city.
For a complete copy
of the company’s news release, please contact:
Darcie Giacchetto
Spaulding Thompson & Associates
949.278.6224
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