CHANDLER, AZ-A partnership controlled by Pacific Capital Investments of Roseville, CA has snagged the 180,279-sf SanTan Gateway for $60 million. The just-completed power center, listed at $63 million, garnered 15 offers in a short run on the market.

The Phoenix-based development partnership–SanTan North LLC and SanTan South LLC–had earmarked the project as a merchant build from the project’s onset two years ago. The center at the intersection of Arizona Avenue and Loop 202 was developed as shadow space to a Wal-Mart Supercenter and Sam’s Club. “They sold this because they needed the capital for new deals and developments,” says Jan Fincham, principal of Phoenix-based Lee & Associates Arizona, who negotiated both sides of the deal along with Lee principals Patrick Dempsey and Kevin Kopp.

Fincham tells the buyer was turning around funds from a 1031 exchange of a similar developer in San Francisco. “The buyer we chose was the most aggressive and they had a compelling exchange requirement,” Fincham says.

The 96%-leased center is situated on close to 11 acres. It boasts a regional and national mix of tenants: Payless Shoe Source, LA Nails & Spa, Party America, GameStop, LA Fitness and Anna’s Linens. Pad sites are filled by Del Taco Inc., Wendy’s International, Inc. and JPMorgan Chase & Co.

Fincham indicates that the roll is balanced, with no immediate expirations. “These are staggered tenants, with all types of terms and leases,” he adds. “This is a strong property in a dynamic location in the southeast valley that provides a good investment.” The new owner has tapped Phoenix Commercial Advisors to lease SanTan Gateway going forward.

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