Shopping Center Changes Hands for $4.5M

GLENDALE, AZ-On the heels of the sale of the Agua Caliente Shopping Center, the Gilbert & Houston Plaza has sold for approximately $4.5 million. The seller was Julian Geller of Los Angeles. Geller was the original developer of the 41,235 sf center, which is located at 1140 South Gilbert Road.

Doug Fielding with the Phoenix office of Marcus & Millichap represented both the buyer and the seller in the proceedings. He tells GlobeSt.com that Geller had developed the center in three phases starting in 1989 and finishing in 1998. He notes that the 88% occupied retail facility is very “aesthetically pleasing” with “local and regional-type tenants.”

While Geller owns another shopping center in the area, the buyer, GILHOUS Ltd. LLC, of Mesa, Ariz., is a single-asset entity created to own the shopping center. Fielding says the buyers purchased the center on the actual occupancy and income, thus any upside potential realized in completely leasing out the center or increasing rents will be “gravy” for the buyer.

Fielding feels there is considerable potential for increased profits through both avenues particularly in the rents. Average rents at the property are $15 per sf triple net, he says, with new product in the same area leasing for between $25 and $30 per sf.

“The retail market in the Phoenix metroplex is fairly stable,” Fielding summarizes. He believes the future is good due to the urban sprawl so common in Phoenix. As neighborhoods continue to span away from the city, he says, “retail will follow.”