Scottsdale Promenade Offered Opportunity to Younan

SCOTTSDALE, AZ-Though Younan Properties Inc. is known for its investment in office properties, it's no stranger to retail product. Because retail is making a comeback, chairman and CEO Zaya Younan wants a piece of that sector.

The company's move toward retail was launched with its acquisition of the 137,552-square-foot Scottsdale Promenade from servicer CW Capital. Zaya Younan tells GlobeSt.com that the foreclosed retail center was acquired through Auction.com and was bought in an all-cash deal.

"Phoenix isn't a new market to us, we've owned property there," Younan explains. Furthermore, with regard to retail, "that's not new to us, either," Younan adds. "We've had retail centers in the past in Los Angeles, Florida and Birmingham, AL."

The appeal of Scottsdale Promenade, he goes on to say, is that it's a retail center, in a great location, in a fast-changing and improving market. Furthermore, with a 65% occupancy, there is plenty of upside potential. Younan says Scottsdale Promenade won't require a much work or repositioning other than deferred maintenance. "We look at this as a lifestyle center, rather than a strict retail center," he says. "It's great. We love dealing with the tenants and dealing with the community to provide the services they may not have had."

Overall, Younan is convinced that now is the good time to buy retail. The buyer's sweet spot is newer, quality retail centers with occupancies ranging from 50% to 65%. In addition to Phoenix, Younan is eyeing potential properties in Dallas and Houston, as well as other areas. He says it's his hope to announce more transactions in the coming year.

"There's a lot of opportunity out there now, which we think might not be available two years down the road," he observes. "It's a great time to build out a portfolio."