Whitestone REIT Sells Phoenix-Area Shopping Center
The deal marks the buyer’s entrance into the Valley of the Sun market.
Mercado at Scottsdale Ranch, a 118,751-square-foot shopping center in Scottsdale, Ariz., has changed hands for $26.5 million. The property was 94.8 percent leased at the time of sale.
Ziff Real Estate Partners purchased the asset from Whitestone REIT, according to Commercial Edge data, thus entering the Arizona market. Protective Life Insurance Co. provided a $15.7 million acquisition loan, the same source shows. Newmark represented the seller.
Mercado at Scottsdale Ranch previously traded in 2013, when Whitestone purchased it for $21.2 million. The acquisition included an $11.1 million debt assumption and a $10.2 million equity requirement which was funded by Whitestone’s unsecured revolving credit facility.
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The 1987-completed neighborhood center comprises retail, office and service space across six buildings. Anchored by Planet Fitness, Walgreens and Goldie’s Sports Café, Mercado at Scottsdale Ranch features a diverse mix of tenants such as Samurai Sam’s, Suburban Sole, Crave Grounds, Fred Astaire Dance Studios and Global Minds.
Located at 10135 E. Via Linda, in the North Scottsdale/Shea Corridor submarket, the shopping center is in an area where the daily traffic count reaches approximately 34,000 vehicles, according to Newmark. Mercado at Scottsdale Ranch is near Route 101, which allows easy access across the Phoenix metropolitan area.
Newmark Senior Managing Directors Steve Julius and Jesse Goldsmith and Director Chase Dorsett negotiated on behalf of the seller.
Phoenix maintains strong retail fundamentals
Phoenix’s population growth has helped the retail sector maintain strong fundamentals. New deliveries in the metro totaled 58,019 square feet and more than 385,000 square feet remained under construction in the fourth quarter of last year, according to a recent CBRE report.
The Phoenix retail market also experienced 45,527 square feet of positive net absorption in the last three months of 2023. North Phoenix and North Scottsdale lead all other submarkets, the net absorption totaling 77,098 square feet and 52,601 square feet, respectively.
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