TUCSON-The 26-year-old Manzanita Place shopping center has traded in an off-market transaction. Community Centers of America Glendale LLC in Glendale, CA has paid $11.6 million to Toronto-based Manzanita Holdings Inc. for the 117,256-sf asset.
David Vallecorsa with Bernstein Murphy Companies LLC in Scottsdale, AZ says the seller of the Safeway-anchored center at 3020 W. Valencia Rd. wanted to leave both the product type and the area. “This is the last asset in Arizona and they’re not even retail owners,” says Vallecorsa, who brokered the transaction with David Bernstein and David Murphy. “They’re mostly apartment guys, who wanted out of retail.”
Vallecorsa says Bernstein Murphy has a good relationship with the buyer. He tells GlobeSt.com that they brought in the buyer to make a bid when they learned the fully leased center could be bought. Although the new owner doesn’t have any immediate plans for upgrades, Vallecorsa says a fresh exterior and a new parking lot most likely are in the asset’s future.
“This is in south Tucson, which is in an area for growth, and in an established neighborhood,” Vallecorsa adds. “The Safeway has done very well and rents are extremely low, which is great upside.” He says the 52,000-sf grocery store lease runs until 2011.
Other tenants are Osco Drugs and the 99-Cents Only Store. “This is a pretty stable center,” Vallecorsa adds, “and there’s no immediate roll in the near term.” Cuna Mutual Insurance Society of Madison, WI provided $8 million of acquisition financing at a 69% LTV.