CBRE has completed the sale of the Prescott Gateway Mall located at 3250 Gateway Blvd. in Prescott, Ariz., a 578,666 SF (324,690 SF owned) regional mall.
A collaborative team of brokerage professionals from CBRE, including Mindy Korth in Phoenix, Ariz., Philip D. Voorhees in Newport Beach, Calif., George Good in Chicago, Ill. and Patrick Connell in Washington, D.C. represented the undisclosed seller in the transaction. The buyer was real estate investment company Tabani Group, Inc. of Dallas, Texas.
“National mall REITs have been net sellers of malls in secondary and tertiary trade areas over the past couple of years, so we knew we would need to cast a wider net in our marketing effort,” said CBRE’s Voorhees. “In the case of the Prescott Gateway Mall, as an REO property, its basis was reset creating an exceptional opportunity for the buyer to acquire a high quality, “modern” mall at less than 20 percent of replacement cost. Our strategy worked, producing 18 offers and competitive bidding to acquire the Prescott Gateway Mall.”
“The area residents view Prescott Gateway Mall as their community center,” said CBRE’s Korth. “It was important to our team that we find a buyer who would recognize Prescott Gateway Mall’s importance to the community as well as its potential.”
Prescott Gateway Mall is comprised of approximately 133,000 SF of traditional, enclosed mall space and approximately 192,000 SF of outward-facing, traditional retail space or “pad” space. The property features opportunity for future anchor tenant development in the form of a 30,000 SF undeveloped pad.
Built in 2002 by Westcor, the Prescott Gateway Mall is considered the area’s most prominent shopping destination. The property is anchored by strong national tenants Sears, JCPenney and Dillard’s, which were not a part of the sale. Additional tenants as part of the sale include Bed Bath & Beyond, Cost Plus World Market, Michaels, Pier 1 Imports, Victoria’s Secret among others.
Tabani Group specializes in the acquisition and repositioning of underutilized properties. The company owns more than 7 MSF of properties in multiple markets throughout the United States.