Newmark Knight Frank (NKF) has announced the $9.6 million sale of Alma Elliot Square in Chandler, Arizona. The 62,164-square-foot neighborhood shopping center is a unique retail asset with a well-performing shadow, grocery anchor and immediate value-add potential. The grocery anchor was not a part of the sale collateral. NKF’s Capital Markets group represented the seller, TriGate Capital, LLC, an active buyer and seller in the Phoenix market. The buyer is Orange County-based Investment Concepts Inc.
Alma Elliot Square is 62 percent occupied and features a mix of national and regional tenants, including Starbucks, O’Reilly Auto Parts, AT&T, Great Clips and Pizza Hut, and is shadow anchored by Fry’s Food and Drug and IHOP. The center provides the buyer the immediate opportunity for significant value enhancement through the lease-up of remaining available space.
“This was an all-hands-on-deck effort - NKF was responsible for handling the capital markets investment sale as well as the leasing representation and property management services,” said Executive Managing Director CJ Osbrink. Osbrink and Managing Director David Guido transacted the sale with support from Senior Managing Director Joe Doucett, Director Joseph Hoye and Associate Director Ryan Moroney who acted as leasing advisors on behalf of the seller.
“The sale of Alma Elliot Square further highlights the fact that there is a deep and competitive buyer pool for value-add assets with daily needs anchors, or shadow anchors.” added Osbrink. “This represents NKF’s Phoenix Capital Markets group’s second value-add, grocery anchored shopping center sale transaction in the last 60 days. We closed Scottsdale North Marketplace, a 68,522-square-foot retail asset anchored by AJ’s Fine Foods, for $16 million in late July.”
Alma Elliot Square is situated in the Chandler submarket, which has experienced rapid economic and demographic growth this cycle as companies such Intel, Northrup Grumman, ON Semiconductor, Zovio, Deloitte, RJR Technologies, Rogers Corp., and Allstate Insurance seek to relocate and expand, reducing costs while still providing employees a high-quality work environment. Retail rents have reflected this influx of demand, averaging 4.1 percent growth year-over-year since 2014. This translates to a 28.5 percent increase to $17.55 per square foot.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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