SCOTTSDALE, AZ-An Arizona investor has parlayed a portion of 1031 exchange money from a land sale into the acquisition of the 25,575-sf North Scottsdale Gateway, a neighborhood retail center.

The 100%-leased property, acquired by the Perry Family Trust for $12.1 million in an off-market transaction, is situated at 17025 N. Scottsdale Rd., north of the intersection of East Frank Lloyd Wright Boulevard and Scottsdale Road. "That intersection is just about on everyone's list. It's among the top corners in town. Frank Lloyd Wright and Scottsdale Road is Main Street and Main Street for this area," explains Ari Spiro, senior adviser with Sperry Van Ness in Phoenix office who, with colleagues Jeff Chalfin and Mike Day, represented the seller, Keith-Sunset LLC of Chandler.

Spiro says the seller had been considering selling the shopping center for awhile. When the buyer stepped forward with a strong offer, the seller was interested. "I'd developed a strong relationship with John Quatrini [the seller's broker], and with that, we got the deal done," Spiro tells GlobeSt.com. Quatrini is with Shell Commercial Real Estate in Scottsdale.

Spiro says the Sun City buyer had cash from a land sale in Gila Bend that he used to purchase the shopping center. He also invested the balance of the estimated $50 million in 1031 exchange profits into other retail properties throughout the metro.

The seller, in the meantime, continues holding assets in the market. "He's active in this market and in Las Vegas," Spiro adds.

A Sperry Van Ness broker sold North Scottsdale Gateway in 2001, when it delivered, for $7.8 million. When it went on the market again in summer 2004, it sold for $9.3 million. "When we first sold this back in 2001, it was supposedly the first multi-tenant retail property to close for more than $300 per sf in Arizona," Spiro says. "Now it's just been sold for more than $12 million."