David Vallecorsa with Bernstein Murphy Companies LLC inScottsdale, AZ says the seller of the Safeway-anchored center at3020 W. Valencia Rd. wanted to leave both the product type and thearea. "This is the last asset in Arizona and they're not evenretail owners," says Vallecorsa, who brokered the transaction withDavid Bernstein and David Murphy. "They're mostly apartment guys,who wanted out of retail."


Vallecorsa says Bernstein Murphy has a good relationship withthe buyer. He tells GlobeSt.com that they brought in the buyer tomake a bid when they learned the fully leased center could bebought. Although the new owner doesn't have any immediate plans forupgrades, Vallecorsa says a fresh exterior and a new parking lotmost likely are in the asset's future.


"This is in south Tucson, which is in an area for growth, and inan established neighborhood," Vallecorsa adds. "The Safeway hasdone very well and rents are extremely low, which is great upside."He says the 52,000-sf grocery store lease runs until 2011.


Other tenants are Osco Drugs and the 99-Cents Only Store. "Thisis a pretty stable center," Vallecorsa adds, "and there's noimmediate roll in the near term." Cuna Mutual Insurance Society ofMadison, WI provided $8 million of acquisition financing at a 69%LTV.

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