(For more retail coverage, click GlobeSt.com/RETAIL.)

GILBERT, AZ-Hudson Realty Capital LLC, in partnership with Biltmore Holdings LLC, has gained control of 13 acres from a local private seller. The partners plan to build 122,000 sf of retail and office space in an as-yet unnamed development with an all-in cost of $15.2 million to $15.8 million.

Hudson Realty, based in New York City, and the Scottsdale, AZ-based Biltmore Holdings will break ground at Power and Guadalupe Roads within six months. Karim M. Demirdache, managing director of Hudson Realty Capital, estimates build-out time will take about one year.

Demirdache tells GlobeSt.com that the master plan involves approximately 100,000 sf of office condo space and 22,000 sf of retail. Preliminary development plans focus on two retail buildings at 11,000 sf each and six two-story office buildings ranging from 6,200 sf to 13,500 sf.

Hudson is likely to keep and lease the retail component. “Right now, we’re looking at a couple of potential options for the retail,” Demirdache says.

The Hudson Realty-Biltmore partnership based its decision on the development strategy because of submarket activity. Demirdache points out that a lot of rooftops are springing up west of the project while more residential and retail development was occurring to the east. “We didn’t see much retail in the immediate vicinity and definitely not as many opportunities for condo office,” he explains. “That was one of the compelling things about the site, that there wasn’t much around it.” The seller of record is Gilbert Waterfront LLC.

The land purchase closely trails the partnership’s $10.4-million purchase of a vacant call center at 1951 N. Alma School Rd. in Chandler. Demirdache says he hopes to repeat the same success that the joint venture had a year ago with the sale of the Countrywide Home Loans Inc. building at 1330 W. Southern Blvd., but he’s also realistic.

“We underwrite our things conservatively. We assume it will be vacant for a year, then have a three- or four-year hold,” Demirdache explains. “Should we do better or exceed our expectations that would change, but we wouldn’t underwrite anything any more aggressively.”

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?


NOT FOR REPRINT

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

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

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