AZ Retail Center Sells For $33M

TUCSON, AZ-Two years after completing the 140,652-sf Old Spanish Trail Marketplace, the Phoenix development team sold it to an active investor in the Phoenix and Tucson real estate markets. The 98%-occupied retail center traded for $33.6 million.

Jan P. Fincham, principal with Lee & Associates’ Phoenix office says the center at 9560 – 9660 East 22nd St. was on the market for about six months, and attracted multiple offers. Fincham, who represented seller Brown Tucson LLC says Old Spanish Trail Marketplace went to Allied Trading and Transacting Corp. NV in Phoenix because of its all cash offer.

“They didn’t require debt, and that was important in this market. With the scarcity of capital available and lender uncertainty during the past four or five months, an all-cash buyer was a key factor in getting this deal done,” says Fincham, who partnered with Lee & Associates’ principal Patrick A. Dempsey on behalf of the seller. Glenn Smigiel, senior vice president with CB Richard Ellis’ Phoenix office negotiated on behalf of the buyer.

Fincham tells GlobeSt.com that the developers consisted of a partnership between W.M. Grace Co. and the Brown Group, which are merchant builders. The buyer also has several retail holdings, he adds. “Now the buyer has a center with a great infill location and national tenants,” Fincham comments. “We were able to get a very attractive price, and the buyer got a good asset.”

Situated on 14 acres, Old Spanish Trail Marketplace’s tenant mix includes Ross Dress for Less, Bed Bath & Beyond, Office Max and Petco. Fincham says the center’s location at 22nd and Harrison Streets is a key location and a busy one in Tucson.