A two-property portfolio which takes up two corners of Mill Avenue and 5th Street in Tempe sold for $13.8 million. The properties were approximately 79 percent occupied at the time of sale.
CBRE Executive Vice President Philip D. Voorhees and Vice President Brad Rable made the announcement that the National Retail Investment Group – West (NRIG-West), in union with Executive Vice President Barry Gabel and Senior Associate Chris Marchildon, completed the sale of the 39,979 square-foot two-property portfolio, at 420 and 501 S. Mill Avenue in downtown Tempe, Arizona.
CBRE’s retail investment experts Voorhees, Gabel, Rable and Marchildon represented the seller, California-based real estate investment company, Starpoint Properties, LLC. The buyer, also represented by CBRE, was a San Francisco-based private investor who completed the sale as part of a 1031 tax deferred exchange.
“With a retail vacancy rate less than four percent, downtown Tempe is one of the healthiest and vibrant retail trade areas in the Valley.” He continued, “Downtown Tempe is an area of metro Phoenix that is thriving and seeing significant new development. 420 and 501 S. Mill Avenue are urban, infill, ‘main and main’ retail locations with excellent tenancy that will benefit from the continued growth of the submarket,” Gabel said.
Built in 1998 and 1891/1995, respectively, the properties at 420 and 501 S. Mill Avenue encompass a 15,460 square-foot site at the northwest corner of Mill Avenue and 5th Street, the primary intersection for dining, shopping and entertainment in the trade area.
“Mill Avenue is arguably Arizona’s best known, pedestrian-oriented retail street,” Rable said. “Adjacent to the country’s largest public university, this offering presented an uncommon opportunity to own two assets at this very visible, highly-trafficked intersection.”
According to Voorhees, the CBRE team’s marketing system distributed more than 294 offering memoranda to investors and brokers, and through the team’s “managed bid” offer process, generated nearly twenty offers to purchase the property.
“The strong competition to acquire the Mill Avenue properties was based on investors seeking urban, infill repositioning opportunities,” said Rable.
