Matthews Real Estate Closes Western Arizona Retail Deal

1650 McCulloch Blvd. N. Image via Google Street View

Matthews Real Estate Investment Services has brokered the $13.2 million disposition of a 54,531-square-foot Safeway store in western Arizona through a 1031 exchange. Associates Charles Wright and Taylor Avakian, Vice President & Director Braden Crockett and Executive Vice President & Managing Director Chad Kurz facilitated the deal on behalf of the seller and procured the buyer.

Public records show the seller, Fortress Investment Group, acquired the building from Safeway in 2019 for $10.7 million as part of a sale-leaseback deal. The triple-net lease has 20 years remaining, with annual rent increase options, according to Crockett. 

Located on 4 acres at 1650 McCulloch Blvd. N., the single-story building was completed in 1988. The Safeway shadow anchors a shopping center home to a number of smaller tenants, from several restaurants to a hair salon. Other retailers in the same corridor include Albertsons, Ross Dress for Less and Walgreens.

In February, Fortress Investment Group completed the $20 million sale of Mount Clare Junction, a 234,036-square-foot shopping center in Baltimore, to Carlyle Development Group. Institutional Property Advisors represented the seller.