Old Navy took down 17,000 sf while Best Buy reserved 45,000 sf and Hobby Lobby roped off 55,000 sf. The retailers plan to be open for the 2006 holiday season.
Michael Clark, senior associate with the Staubach Co.'s retail group in Phoenix, tells GlobeSt.com that three additional leases for junior anchors are in the works for a combined total of 37,000 sf at the power center, which is under construction at the intersection of McDowell Road and 99th Avenue. He anticipates the leases will be signed in 35 to 40 days as will pad site deals for a ground lease and a build-to-suit for two restaurants.
"The goal is to have this property 90% leased upon delivery, which is estimated around the fourth quarter of this year," says Clark, who with Staubach's Mike Kumelski handled the transaction for the owner and general contractor, J. Walters Construction Co. Inc. of Kansas City, KS.
"A lot of tenants have shown interest because of the location," Clark says. "There's visibility from two major freeways, I-10 and Loop 101."
Darren Pitts with Staubach's Phoenix office represented Old Navy while colleague Dave Cheatham teamed with Staubach's Scott Shillings in Houston to negotiate the Hobby Lobby lease. Red Realty Advisors of Scottsdale, AZ represented Best Buy.
Clark says Gateway Crossings' rents are running in the mid-teens per sf. Though the lease values are being kept under wraps, Hobby Lobby weighed in on the low end of the average, with Best Buy and Old Navy coming in a little higher.
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