46,157-SF Shopping Center Rings Up $13M

GILBERT, AZ-A just-completed neighborhood shopping center, shadow-anchored by Henry's Marketplace, has been sold to a local investment company for $13.25 million. The 46,157-sf Shoppes at Mirador Square was developed and sold by the Silk & Stewart Development Group of Pittsburgh, operating under Gilbert Henry's LLC.

"The seller's MO is to develop projects then sell them," comments Andrew Fosberg, an associate with CB Richard Ellis' Phoenix office. The 5.85-acre Mirador Square at 860 E. Warner Rd. was the seller's first development outside Pennsylvania, but the development group is working on additional projects in the Greater Phoenix area.

Fosberg says the class A center spent a short time on the market, attracting 10 offers. SFB Investments LLC of Paradise Valley got the nod for its local presence.

"The buyer took on existing financing that the developer had gotten after finishing the project," Fosberg tells GlobeSt.com. The assumed debt has a 10-year term at a 5.2% fixed-rate interest and 30-year amortization.

Part of the center's appeal was the 95% occupancy with regional and national tenants including Ben & Jerry's Ice Cream, the UPS Store and Household Finance Corp. "Most of the leases are five years, with all the tenants moving in and beginning their terms late last year," Fosberg explains.

Another deal appeal was Henry's Marketplace, a specialty health-food store owned by Wild Oats Markets Inc. in Boulder, CO. There are only three other Henry's in the area. "This is the first center sold with a Henry's attached to it," Fosberg says.

Fosberg teamed with CBRE senior vice president Steve Fernandez, first vice president Jenifer Lunt and sales assistant Claudia Jara as well as Jeffrey Ackerman, CBRE executive vice president in Pittsburgh to represent the seller. Michael Hackett, senior associate for Marcus & Millichap Real Estate Investment Services Co. in Phoenix was on hand for the buyer.