GILBERT, AZ-Another California investment group has swapped commercial property in its homeport for a 61,377-sf, class A shopping center in the Phoenix metro, spending $11.2 million for a 20-tenant center with a 97% occupancy.

A private partnership from San Francisco bought Encore Plaza at 1515 N. Gilbert Rd. in Gilbert from Cornerstone Development of Laguna Niguel, CA. The buyer turned around proceeds from a multifamily holding in San Francisco, besting nine others in the chase for the retail center. “The highest offers were all from California,” Dennis Vaccaro, director of Faris Lee Investments in Irvine, CA, tells about a sale that brought 99% of the list price in less than 30 days on the market.

Encore Plaza is just the latest in a string of sales in the metro as Californians opt for greener grass on the other side of the line. “The highest priced payers are all coming from California,” Vaccaro says. The inducement is an 8% cap rate instead of 4%. Matt Horner of Re/Max Central Santa Rosa represented Encore Plaza’s buyer.

Cornerstone Development bought Encore Plaza, built in 1988, in the early 1990s and expanded it in 1995. The 6.1-acre asset’s sale included one of two out-parcels, a restaurant leased for the long term to the Philiberto’s chain. Vaccaro says a couple leases will roll each year on the 20-tenant roster. The average rent is $1.30 per sf, triple net. Case Huff & Associates of Phoenix will continue to manage the holding, according to Vaccaro. Hollywood Video and Countrywide Mortgage Co. anchor the plaza.

Encore Plaza is just one of several transactions in Vaccaro’s pipeline, all California investors looking for a piece of Arizona. In Nogales, the firm has interest mounting for the 200,000-sf Loma Linda Shopping Center, bought in two phases last year and repositioned for resale. The 97%-occupied, grocery-anchored center is on market for $18.2 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.