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BULLHEAD CITY, AZ-After falling out of escrow twice, Bullhead Square, an 180,191-sf shopping center, has sold for $12.7 million to a syndication group from the San Fernando Valley.

GMBH Account LLC of Northridge, CA purchased the Kmart-anchored center at 2250 S. Highway 95 from Forty-One LP of Newport Beach, CA. Bullhead Square, located across the Colorado River from Laughlin, NV, received 14 offers, Patrick Toomey, a senior associate with CB Richard Ellis Inc.'s Newport Beach, CA office, tells Globest.com.

"The center offers a value-add opportunity because of the below-market rents and development opportunity," Toomey explains, citing a residential boom as Southern Californians relocate to the area. The seller's CBRE team included Phil Voorhees in Newport Beach and Steve Fernandez and Jenifer Lunt, both in Phoenix. Geoff Mills of Los Angeles-based Howard & Mills Inc. handled talks for the buyer.

"The challenges to the sale were the tertiary market and the Kmart," Toomey says. "Once the Sears merger went through, it was much easier to get financing." The buyer obtained a loan from Intervest Mortgage of Los Angeles.

The 1980s-era center is situated on 23 acres, five of which are vacant. It is anchored by an 86,479-sf Kmart, with a lease in place through 2014.

Bullhead Square is 98% leased to a mix of national and local tenants including Bashas, Beall's and Subway Restaurant. The average rental rate is $14.40 per sf. "On average, rents could be increased $2.40 per sf," Toomey says. The new owner has hired Eisenberg Co. of Phoenix to lease and manage Bullhead Square.

Instant Insights /

180,191-SF Kmart-Anchored Center Sells on Third Try

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