The new owner is starting the play at a 7.1% cap rate. Situated on close to three acres at 801 S. Power Rd., the center was sold by R&E Investments Inc., which had no plans to formally list or market the property. "Basically, he was willing to sell for the right offer and the buyers came right in that range," says Sean Stutzman, investment adviser in Phoenix for Sperry Van Ness.
The Oliver Family Trust and Ruth Ann Oliver Cowan Trust, both from Marina Del Rey, CA came in with the right offer and knowledge of the market. Stutzman says the buyer has similar retail centers in town. "The buyer was attracted to this because of the low price per sf," he says. He adds that the property has a built-in customer base with a location adjacent to the Leisure World Retirement Community.
The center is home to tenants like Bench Warmers Grill, A Touch Above the Rest, A+ Pit Stop Services and Advanced Dental. "There are no immediate upgrades planned and the property is fairly stable right now," Stutzman says. "The buyer's goal is to raise the rents as they're pretty low for the market."
Stutzman tells GlobeSt.com that seller is divesting of similar assets in the area and redeploying capital into assets that are less management intensive. He and Sperry Van Ness' senior advisers Mike Day and Ari Spiro and adviser Jeff Chalfin arranged the deal. Nicholas Miner, associate broker with Phoenix-based Eagle Commercial Realty Services, represented the buyers.
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