Whitestone REIT Buys Phoenix-Area Retail Center

Whitestone REIT has bought Scottsdale Commons, a 69,482-square-foot procuring heart in Scottsdale, Ariz. C&H Growth offered the asset for $22.2 million, in keeping with CommercialEdge knowledge.

CBRE’s Senior Vice President Joseph Compagno and Vice President Benjamin Farthing brokered the all-cash transaction, working for each events. On the time of the sale, the property was 96.6 p.c leased.

Scottsdale Commons final traded in 2007 when C&H Growth acquired it for $17.6 million, CommercialEdge knowledge reveals. In 2015, the property turned topic to a $15.1 million CMBS mortgage originated by Deutsche Financial institution, in keeping with the identical supply.

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The neighborhood heart got here on-line in 1980. The tenant roster on the retail heart features a numerous combine of outlets equivalent to Rosati’s Chicago Pizza, Inexperienced Nook Mediterranean, The Diamond Vault, Rusty Nail Meats, U.S. Egg, Companion Pet Companions and BevMo.

The acquisition of Scottsdale Commons was funded by means of Whitestone’s capital recycling program, meant to enhance the general high quality of its portfolio by means of focused tendencies and the acquisition of higher long-term worth properties. This system commenced in 2022 and has since amassed acquisitions exceeding $100 million in worth.

Phoenix sustains a sturdy retail sector

Positioned at 7119 E. Shea Blvd., Scottsdale Commons is inside Phoenix’s Scottsdale/Shea Hall submarket. The procuring heart is on the nook of the intersection of Scottsdale Highway and Shea Boulevard, in an space with a each day visitors depend of 107,557 automobiles, in keeping with Whitestone. Scottsdale Commons serves greater than 334,392 households inside a 10-mile radius, with the typical family earnings inside a 3-mile radius of roughly $179,144.

Whitestone REIT at present owns 29 procuring facilities all through Scottsdale and Phoenix. The corporate has lately offered Mercado at Scottsdale Ranch, a 118,751-square-foot retail heart in Scottsdale, Ariz., for $26.5 million.

The retail sector’s strong fundamentals have been sustained by Phoenix’s inhabitants progress. The metro ended final yr robust, with 2.3 million sq. ft of retail house beneath building, in keeping with a latest Avison Younger report. The excessive degree of improvement in 2023 additionally contributed a complete of almost 1.5 million sq. ft of retail house delivered to the market.