The 83,612-square-foot Broadway Plaza retail complex in Tucson was sold to shopping center REIT Philips Edison-Arc for $12.7 million, according to Marcus & Millichap. The real estate investment services firm represented the Ohio-based buyer in this deal.
The seller, Larsen & Baker, acquired the Plaza in 1997. Fifteen years later the company chose to sell the property as it intends to buy distressed properties and turn them around, thus creating long term value for the company, said Andy Seleznov, director of leasing for Larsen Baker, in an interview with Inside Tucson Business.
Developed in 1982, Broadway Plaza Shopping Center is shadow-anchored by Home Depot and Kohl’s, as reported by Marcus & Millichap. Among its major tenants are names like Sprouts Grocery (dba Sunflower), PetSmart, Western Dental of Arizona Inc., Table Talk, Sunwest Federal Credit Union, 4 Branches Community, UPS Store and Premier Hearing. At the time of the sale the retail property was 94 percent leased.
The plaza’s four buildings were constructed between 1980 and 1982. Its largest building is about 57,000 square-feet and the smallest is 6,200 square-feet. The two mid-sized buildings are about 10,000 square-feet each.
“Demand for well-located shopping centers continues to be strong, while cap rates continue to reflect the compressed interest rates,” said Sanford Burstyn, an investment specialist in Marcus & Millichap’s Phoenix office.
A CBRE report shows that absorption within Tucson’s shopping centers at the end of the second quarter of 2012 was positive, thus marking the fifth straight quarter of positive absorption. In the first half of this year the local retail market recorded a total absorption of 392,088 square feet, resulting in a 2 percent reduction in vacancy over the last six months.
Photo courtesy of Phillips Edison & Company
Chart courtesy of CBRE
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