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PEORIA, AZ-A father and son team from Northern California has made its third and final acquisition in Arizona with the $6.4-million purchase of Columbia Square, a 48,429-sf center with two undeveloped pad sites.

The buying entity, headed by Jaswant Gill of Hayward, CA, did a 1031 exchange out of multifamily assets in Northern California. The seller of Peoria's 7420 Cactus Rd. was the Orsett/Columbia Ltd. Partnership of Wellesley, MA.

"Columbia Square fit Gill's exchange requirements perfectly," says Steve Julius, a strip retail specialist with Marcus & Millichap Real Estate Investment Brokerage Co. Columbia Square, trading at close to a 7.8% cap rate, was listed at $6.6 million by Eric Wichtermann and Stan Shafer with Grubb & Ellis/BRE Commercial LLC in Phoenix. Julius tells GlobeSt.com that the Columbia Square acquisition took the balance of Gill's 1031 exchange proceeds. He made a 32% down payment and obtained a 10-year conduit loan with a 5.59% interest rate from PNC Bank. The loan is amortized over 30 years.

Situated on 7.5 acres on the northeast corner of 75th Avenue and Cactus Road, Columbia Square is fully leased to 25 tenants, with leases that have an average of three years left on the term. The roster includes Domino's Pizza, State Farm Insurance and Curves.

The class B center, built in 1987, is at the same busy intersection as two grocery-anchored centers and an under-construction CVS/Pharmacy. "It's close to Loop 101 and there are still new homes going up," Julius says. More than 130,000 people live within a three-mile radius of the center and the population is expected to increase 13% in the next five years. The average annual household income is $70,000.

The father and son team was up against a dozen other investors vying for Columbia Square, according to Julius, who brokered two other retail acquisitions for them. In the past three months, they also bought the Grand Bell Plaza at 16551 N. Dysart Rd. in Surprise for $3.1 million and the Quorum Shops at 1060 W. Beta St. in Green Valley for $2.2 million.

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GlobeSt.com EXCLUSIVE: $6M Plus Nabs Fully Leased Center

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