The Phoenix-based development partnership--SanTan North LLC and SanTan South LLC--had earmarked the project as a merchant build from the project's onset two years ago. The center at the intersection of Arizona Avenue and Loop 202 was developed as shadow space to a Wal-Mart Supercenter and Sam's Club. "They sold this because they needed the capital for new deals and developments," says Jan Fincham, principal of Phoenix-based Lee & Associates Arizona, who negotiated both sides of the deal along with Lee principals Patrick Dempsey and Kevin Kopp.
Fincham tells GlobeSt.com the buyer was turning around funds from a 1031 exchange of a similar developer in San Francisco. "The buyer we chose was the most aggressive and they had a compelling exchange requirement," Fincham says.
The 96%-leased center is situated on close to 11 acres. It boasts a regional and national mix of tenants: Payless Shoe Source, LA Nails & Spa, Party America, GameStop, LA Fitness and Anna's Linens. Pad sites are filled by Del Taco Inc., Wendy's International, Inc. and JPMorgan Chase & Co.
Fincham indicates that the roll is balanced, with no immediate expirations. "These are staggered tenants, with all types of terms and leases," he adds. "This is a strong property in a dynamic location in the southeast valley that provides a good investment." The new owner has tapped Phoenix Commercial Advisors to lease SanTan Gateway going forward.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.