Scottsdale Land Drives $22M Off-Market Deal

SCOTTSDALE, AZ-A Des Moines-based developer’s flexibility and willingness to compromise has earned an off-market deal for the 63,016-sf, mixed-use Center at Troon North. The buyer has paid $22 million to the local developer to close the deal.

The Center at Troon North, situated at 28150 N. Alma School Pkwy., is an office-and-retail project with an adjacent eight acres and a pad site for additional development. Colliers International Inc. associates and the buyer’s brokers, Gordon Carll and Cary Chandler, say Hurd Real Estate Services’ initial wish was to take just the land and not the center. But the center’s developer, Dynamite and Alma School LLC, had other thoughts.

“The seller indicated to us that he didn’t want to just sell the land. If he was going to do it, it would be as a package with the center included,” Carll says. “He told us the price point; we made a phone call, and we had a contract three days later.”

Carll says the main tenants, which include Walgreen Co., Circle K Co. and Wells Fargo & Co., have long-term leases, with some of the smaller retailers on three- to five-year leases. As a result, the brokers point out there is upside in the project as well as a regular income stream from the longer-term tenants.

Chandler tells GlobeSt.com that Hurd liked the income stream from the 100%-leased center. The new owner also is considering the best options for the remaining land. He says discussions have opened with some national companies as potential tenants. “There are a few directions in which he can go,” Chandler adds. “He’s weighing out his options now.” Hurd is managing the property and will handle leasing.

Although Hurd is from the Midwest, Chandler and Carll say he has several holdings in Phoenix and is familiar with the market. However, Carll adds, “this is his largest and first multi-tenant property in Phoenix.”