Community Center Plan Backs $8M Land Play

John M. Appelbe, senior vice president with Grubb & Ellis/BRE Commercial LLC's Phoenix office, says the developers plan to break ground in fall 2008 on land at the corner of Cotton Lane and Yuma Road. In all likelihood, Cotton Flower Marketplace, a community retail project, will go vertical in phases. Although the construction cost and its exact size are still being fine-tuned, similar projects have been built for $20 million to $30 million.

Appelbe, who represented the buyers, says the land is a great corner, which is what prompted its acquisition from the seller, Montecito Cos. of Las Vegas, which negotiated the deal directly. "There's a Super Target-anchored power center at the northeast corner of the intersection," Appelbe explains. "Cotton Lane is on alignment for the 303 Freeway and Yuma is a major arterial. It's the best-located intersection in that market." He says there isn't a similar center nearby.

Appelbe tells GlobeSt.com that Cotton Flower Marketplace will consist of pads and inline shops. CVS plans to develop its own store while LA Fitness has signed a long-term lease for a build-to-suit.

Both Desert Troon and Diversified are active players in the market so Appelbe says there could be further land acquisitions in the future. "Both of these developers are always looking for development deals," he says. "They're constantly looking throughout Maricopa County and the southwestern US."