PHOENIX-A first-time Valley buyer, with 1031 exchange funds to spend, has paid $3.9 million for the 18,060-sf Pedregal Pointe Shopping Center to a limited liability company from Philipsburg, MT.
The Park Family Trust of Hayward, CA took its first Valley deed--3145 E. Chandler Blvd.--from Grange Pedregal Pointe Mall LLC, says Chris Keenan with Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office. He tells GlobeSt.com that Pedregal Pointe Shopping Center was on the market 10 months because it was encumbered by a conduit loan with an interest rate of almost 8% and carried a $4.8-million list price. He says offers started to pour in once the seller pre-paid the loan and reduced the price to $4.3 million.
"The center received six offers within a matter of days," Keenan says, adding it traded at a 6.75% cap rate. "This buyer was the most aggressive with a quick close and a large non-refundable deposit."
Keenan says the trust secured a 25-year loan from First Fidelity Bank for $2.7 million at a 6.55% interest rate. Under the terms, the borrower is paying only the interest for the initial three years, he adds.
Built in 2001, Pedregal Pointe Shopping Center was 80% occupied at closing. The tenant roster includes nationals like Pizza Hut and the UPS Store and locals like a dry cleaners and scuba diving supply store. "The tenants that are in there now will probably stay there," Keenan says, adding the average rent is $21.30 per sf.
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