David Maltzman of Beverly Hills acquired a 95%-occupied retailcenter on 7.8 acres at 9699 N. Hayden Rd. According to JosephCompagno, associate director of Marcus & Millichap Real EstateInvestment Services, who represented both sides of the transaction,the project had been anchored by a Wild Oats market, but the storewas closed down when it was acquired by Whole Foods, which alreadyhad an operation in Scottsdale. The space was subsequently leasedto New Vision Spiritual Growth Center, which took 14,000 sf, andSalon Boutique, a small chain of spa treatment centers, whichopened in 11,358 sf.

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In addition to the church and spa, the center is tenanted by amix of mostly local shops and restaurants. But as Compagno pointsout, the absence of national tenants is countered by a location inthe midst of a very high-income community. Mountain View Plaza issituated between Gainey Ranch Golf Club and Starfire at ScottsdaleCountry Club plus there are five other golf or country clubs withinthree miles. The broker says annual retail rents in the areaaverage $25 per sf to $30 per sf.

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Mountain View Plaza was sold by another private investor, JamesKaufman of Phoenix. He owned the property eight years during whichtime it had shown significant appreciation.

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Compagno brought the two parties together in an off-markettransaction. He says the buyer, who owns one other property in thePhoenix market, was looking for a 1031 exchange opportunity andwanted to find a property in or around Scottsdale because of itsdemographic profile and prospects for rising values."He sees thisas a longer term hold for his portfolio," Compagno tellsGlobeSt.com. "He plans to raise the rental rates as leases turn andimprove the value over time."

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According to Compagno, transaction velocity in the area hasslowed from last year, but investor interest in Scottsdale remainsstrong. "There's not a whole lot of product that trades in the citybecause owners like to hold onto what they have," he says."Scottsdale retail properties tend to generate solid returns fortheir owners so they only sell when the investments have fullymatured."

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