HOUSTON-Performance confidence combined with knowledge from another 2011 transaction has prompted Los Angeles-Based Westwood Financial to sell the 113,108-square-foot Pinnacle at Scottsdale shopping center to Whitestone REIT. The REIT, which continues to make inroads into the Phoenix metro area, paid $28.8 million for the 91%-occupied, class A retail center.

The Pinnacle at Scottsdale deal is Whitestone REIT’s second from Westwood Financial; last August, Whitestone bought the 102,733-square-foot Terravita Marketplace from Westwood.

It was that experience, explains Lee & Associates’ Jan Fincham, that allowed Whitestone to beat out the nine other offers received for Pinnacle at Scottsdale.  “The seller had a lot of confidence in the buyer’s performance, and the buyer performed exactly as promised,” says Fincham, who partnered with colleague Patrick Dempsey to close the deal. “I give Whitestone kudos – they were very professional and did everything they promised.”

Fincham tells Globest.com that the center, which is anchored by a Safeway Grocery store, attracted a lot of interest because of its location in Scottsdale and because this particular deal included the grocery store, rather than the store being a shadow anchor. The centers that include grocery stores with long-term leases, Fincham explains, are considered the most desirable across the country.

Westwood Financial, which has a huge presence in the Phoenix area, marketed four of its centers in 2011. Two of the four have sold, while a third one is under contract, though not to Whitestone, and will likely close during Q1 2012. A fourth is still on the market, Fincham says.

“Westwood is diversifying geographically,” Fincham goes on to say. “They have substantial holdings in Phoenix, and they’re trying to branch out, which is why they’re selling these assets.” Even after the four assets are sold, he adds, Westwood will still have a very strong presence in the area.

As for the buyer, the deal brings it a center with credit-worthy tenants (such as Ace Hardware, Subway Restaurants and Starbucks in addition to the Safeway), good cash flow and some upside in that there is space available to be filled. “When the economy finally gets squared away, the new owners can increase the rent and fill up the vacancy,” Fincham says.

Furthermore, an adjacent 4.5 acres provides potential for additional retail development.