Tag Archives: velocity retail

PowerPoint Presentation

Phoenix retail is poised for progress

The Phoenix commercial retail market continues to improve in vacancy and increased leasing activity.  Vacancy rates, once hovering near 14% have now dropped to 10.6% through the 2nd quarter of 2014.  Leasing activity of 2.6 million square feet in 2013 was the strongest recorded since before the Great Recession six years ago.  Additionally, in the first two quarters of 2014 the market has recorded absorption of 750,000 square feet.  These three factors combined position the market to continue to improve through the balance of 2014.

Of the six regional areas, all but two are in single-digit vacancy as of the 2nd quarter.  The Central and Southeast regions continue to be hit with higher big box vacancies that drive the vacancy higher in these regions.  Overall in Phoenix big boxes total 38% of our total vacant space.  However, in the Central region big boxes account for 46% of the vacancy, and in the Southeast region it is 42%.   With 261 vacant big boxes in Phoenix, this component of the retail market continues to be a cause for concern.

A bright spot on the horizon is that retailers and restaurants are active with national and regional concepts announcing their arrival in the market.  Activity for shop space is increasing and rental rates for premium buildings are holding strong.  Retailers who have remained relatively dormant during the last five or six years are cautiously starting up their expansion plans once more.

With little to no new construction on the horizon we are accelerating the rate that vacancy declines, and even with continued steady absorption, we are projecting that the entire market will be in single-digit vacancy with every regional area recovering to near pre-recession vacancy levels.  Phoenix is poised for continued progress in 2014.

Anthem Eastside Shops

Dollar Tree Opens Anthem Location

Velocity Retail Group, LLC announces that Dollar Tree has finalized a seven-year lease for a 9,145 SF store at Anthem Eastside Shops at the NWC of Anthem Way and Venture Drive. Larry Miller and John Jackson of Velocity Retail Group represented the Landlord, DPC Development Company in the transaction. The tenant was represented by Kurt Kalocin of SRS Real Estate Partners. The store is planning on opening September 1, 2014.

 

“Dollar Tree has been seeking a site in the Anthem trade area for some time,” said Miller. “Finding suitable real estate to accommodate their size has been the challenge. Our Landlord was able to relocate an existing tenant in order to create the space for Dollar Tree,” he added.

 

“By working through our brokerage team at Velocity Retail we were able to creatively find a solution that works for Dollar Tree and our ownership group. This new tenant brings our center to almost full occupancy,” said Justin Lutgen, Acquisition Manager for DPC Development. “Dollar Tree will be a great asset to the residents of Anthem for their daily shopping needs,” he added.

 

Dollar Tree is a discount variety store that sells items for $1. The company is headquartered in Chesapeake, Virginia and operates over 4,900 stores in the United States and Canada.

Gold's Gym

Velocity Retail Group Releases Recent Transactions List

Velocity Retail Group, LLC completed eleven transactions in February including a large industrial transaction on behalf of one of their tenants and two locations for a new restaurant concept to the Arizona market. A summary of each transaction follows:

Darren Pitts of Velocity Retail Group and Bob Crum of Ross Brown Partners negotiated a five-year lease on behalf of The Dump a subsidiary of Haynes Furniture Company, Inc. of Virginia for a 156,410 square foot warehouse at 6655 S. Kyrene Road in Tempe, Arizona. The landlord, CLPF-Kyrene 3, LP, an entity controlled by Clarion Partners, LLC, was represented by Jones Lang LaSalle. The Dump currently operates in the location which serves the retail store at Elliot Road and Priest Avenue.

Andy Kroot of Velocity Retail Group represented Goodwill Industries of Central Arizona in a 10-year lease of 31,200 square feet at South Mountain Crossing, located at the northwest corner of Southern Avenue and 35th Avenue in Phoenix, Arizona. The landlord was represented by Neil Board of Western Retail Advisors.

Larry Miller and John Jackson of Velocity Retail Group represented Campus Village West at the northwest corner of Thunderbird and 49th Avenue in the lease of a 750 square foot space to Vaporice, Inc. This is the second valley location for the company. The new shop is set to open in April.

Chip Thor of Velocity Retail Group represented Snooze Eatery in a 10-year lease for 4,200 square feet build-to-suit location in the Gilbert Heritage Square District at 304 N. Gilbert Road, Gilbert, AZ. The new location will be the second in the Phoenix metro area and is expected to open in November of this year.

Velocity Retail Group’s Nick Ault, John Jackson and Michael Clark negotiated the 5-year lease of 1,200 square feet by Synergy Vapor Labs at Northsight Crossing, located on the northeast corner of Raintree Road and Northsight Boulevard in Scottsdale Arizona. Velocity represented the landlord, LP Realty, and the tenant was represented by Matthew Ault of Voit Real Estate Services. This is the second location for Synergy Vapor Labs, with more planned for Arizona. The Scottsdale store will open this month.

Judi Butterworth and Nick Ault of Velocity Retail Group negotiated a 5-year lease for 1,501 square feet at Peoria Plaza on the southwest corner of Union Hills and 91st Avenue in Peoria, Arizona. The tenant, Salon 301, plans to open in May of this year.

Mattress Firm, Inc. has finalized a 10-year lease for a build-to-suit location at the southwest corner of US 60 and Greenfield Road in Mesa, the 1754 S. Greenfield. Darren Pitts and Michael Clark of Velocity Retail represented the tenant in the transaction. The landlord is Alpha IV Partners, LLC, an entity controlled by Diversified Partners. The 4,200 square foot location is expected to open in the first quarter of 2015.

Velocity Retail Group’s Andy Kroot represented Goodwill Industries of Central Arizona, and Larry Miller, and John Jackson, also of Velocity Retail Group represented Corona del Sol Plaza at the southeast corner of Ray and Rural Road in Phoenix, Arizona, in the lease of 1,275 square feet for a new Goodwill Donation Center. The donation center will be open for business in June of this year and represents one of 20 sites that Goodwill plans to open in Arizona in 2014.

Andy Kroot of Velocity Retail Group represented Pizza Five85 in two transactions that represent the entrance of a new pizza concept restaurant to the Arizona market. A 5-year lease of 2,434 square feet was negotiated at Scottsdale Crossing Shopping Center, 2805 N. Scottsdale Road in Scottsdale, Arizona, and a 10-year lease of 2,425 square feet was negotiated at Chandler Pavilions, 890 N 54th Street in Chandler, Arizona. The landlords were represented by Trish Kaller of Inverness, LLC, and Cliff Johnston of Cassidy Turley BRE, respectively. Both shops will open in the 2nd quarter of 2014.

Velocity Retail Group’s Larry Miller and John Jackson represented the landlord, Tang Properties at 2501 S. Dobson Road in Mesa, Arizona in the negotiation of a 3-year lease of 865 square feet. The tenant is a yet-to-be-named E-Cigarette shop that is planning to open in April of
this year.

Rendering of Pizza Five85's Chandler location. Courtesy of Velocity Retail.

Andy Kroot Negotiates New Leases for Pizza Five85

Andy Kroot, Principal at Velocity Retail Group, LLC announced Wednesday that Pizza Five85 has signed two new leases in February and will be entering the Phoenix market this year.

“I am looking forward to continuing to help Pizza Five85 locate and open new locations all over the Valley; they have a great concept that Arizona residents are going to really enjoy!” said Kroot.

The new stores include:
• SEC of I-10 & Ray Road – 2,426 square foot store will be located in the Chandler Pavilions.
• SEC of Scottsdale Rd and Thomas Rd – 2,434 square foot store will be located in Scottsdale Crossing Shopping Center.

“We are excited and looking forward to launching our brand, Pizza Five85, in these two locations – which will be two of our model stores. We can’t wait to fire up the ovens and provide fresh & fast create your own pizzas, pastas, and salads!” said Wing Mar, vice president of operations.

SECGreenfieldandMcKellips_VRGMediaLab

Velocity Retail Releases Recent Transactions List

Velocity Retail Group, LLC completed eight transactions in January including two big box deals. The new stores will be located in California, Phoenix, Yuma and Tucson. A summary of each transaction follows:

Andy Kroot of Velocity Retail Group represented Goodwill Industries of Central Arizona in a 15-year lease of 20,000 square feet at Fortuna Commons at the southeast corner of I-8 and Fortuna Road in Yuma, Arizona. The landlord was represented by Chris Gerow of NAI Horizon.

Velocity Retail Group’s Larry Miller negotiated a 5-year lease on behalf of Rod Works for a 2,488 square foot space at The Shops at Norterra located at the northeast corner of I-17 and Happy Valley Road in Phoenix. The landlord is RED Development/USAA. The storeis currently open.

Darren Pitts of Velocity Retail Group negotiated a 5-year lease for a 3,300 square foot location on behalf of Uptown Cheapskate at the northwest corner of Ina and LaCholla Roads in Tucson. The landlord is Schottenstein Property Group. Uptown Cheapskate® is a sister company to KiD to KiD®, an award winning children’s product franchise with stores nationwide.The stores buy, sell, trade and consign new and gently used clothing and accessories at discounted prices. Uptown Cheapskate caters to the pre-teen and young adult demographic. This will be the first location for this tenant in Tucson.

Velocity Retail Group’s Andy Kroot negotiated a 5+ year lease with Jimmy John’s Gourmet Sandwiches for a 1,623 square foot store at Falcon Gateway located on the southeast corner of Greenfield and McKellips in Mesa. The new store is expected to open in April. Brian Polachek with SRS Real Estate Partners represented the tenant in the transaction.

Velocity Retail Group’s Darren Pitts and Vince Roche with Pacific Commercial Realty Advisors negotiated a 10-year lease for a 43,929 square feet store on behalf of Ashley Furniture Homestore. The new store is located in Sequoia Plaza at 3848 S. Mooney in Visalia, California. The store will open for business in the second quarter of this year.

Darren Pitts, and Michael Clark of Velocity Retail Group represented Mattress Firm in a 10-year lease of 5,000 square feet at El Con Mall located at the northwest corner of Broadway and Alvernon in Tucson, Arizona.

Velocity Retail Group’s Andy Kroot negotiated a lease on behalf of Goodwill Industries of Central Arizona for a 1,080 square foot Donation Center at the Scottsdale Grayhawk Center on the southeast corner of Scottsdale Road and Grayhawk Drive in Scottsdale. The landlord was represented by Adam Madison of Cushman Wakefield.

East Valley Vapors signed a lease for a 1,200 square foot space at Elliot Square on the southeast corner of Elliot Road and Dobson Road in Chandler. Velocity Retail Group’s Larry Miller and John Jackson represented the landlord. This will be the first location for East Valley Vapors and is expected to open for business in April.

Plaza Del Sol

Velocity Retail Releases December Transaction List

Velocity Retail Group, LLC completed 10 transactions in December. A summary of each transaction follows:

  • Velocity Retail Group’s Dave Cheatham and Darren Pitts negotiated a lease with Fallas Discount Stores for 24,390 square foot space at Plaza del Sol shopping center at the southeast corner of Indian School Road and 33rd Avenue in Phoenix. The landlord is Kimco Realty Corporation of New York. The storeis expected to open in the first quarter of 2014.
  • Andy Kroot of Velocity Retail Group negotiated a 10-year 23,513 square foot location on behalf of Goodwill Industries of Central Arizona at the northeast corner of Baseline and 48th Street in Phoenix. The landlord, MCS South Point Plaza, LLC was represented by Jason Fessinger of Strategic Retail Group. Goodwill plans for a full-size retail location in this Fry’s Food Store anchored shopping center.
  • Velocity Retail Group’s Dave Cheatham, Darren Pitts and Andy Kroot negotiated on behalf of De Rito Partners Development, Inc. for a 99 Cent Only store at the Pavilions at Talking Stick Shopping Center at the northeast corner of Indian Bend Road and the Loop 101 Freeway in Scottsdale. The 16,750 square foot store is expected to open in February and will feature a perishable food department and be located in the Target quadrant of the shopping center. Jim Mitchell with Retail Advisors S.W. represented the tenant in the transaction.
  • Dobson Baseline Plaza at the southeast corner of Baseline and Dobson in Phoenix was represented by Velocity Retail Group’s Jim Edwards, John Jackson and Larry Miller in the lease of 3,100 SF to Baby Kay’s Cajun Kitchen. The tenant was represented by Reuel Couch of The Restaurant Brokers. A long-time Phoenix favorite located at Town & Country on Camelback Road for 20 years, Baby Kay’s will re-open at the Dobson Baseline Plaza in February, and have plans to seek a new central Phoenix location in the near future.
  • Jim Edwards and Larry Miller of Velocity Retail Group represented the Landlord, Encore Plaza, Inc. in a 3,715 SF transaction for 2nd Wind Fitness Equipment at Encore Plaza shopping center at the southeast corner of Baseline and Gilbert in Mesa, Arizona. The tenant was represented by Jake Ertle of Rein & Grossoehme Commercial. This will be the third location for the tenant who is expected to open in February.
  • Darren Pitts of Velocity Retail Group represented Uptown Cheapskate, a high-fashion consignment store concept, in a new location in the Pima Crossing shopping center at the northwest corner of Shea and Loop 101 in Scottsdale. Uptown Cheapskate® is a sister company to KiD to KiD®, an award winning children’s product franchise with stores nationwide. The new 2,683 square foot store will be an expansion to the existing Kid to Kid store which has been operating in the shopping center for 10 years. The total size of both concepts is 5,323 square feet. The stores buy, sell, trade and consign new and gently used clothing and accessories at discounted prices. Uptown Cheapskate caters to the pre-teen and young adult demographic. Regency Centers, L.P. is the landlord.
  •   Velocity Retail Group’s Larry Miller, John Jackson, and Jim Edwards negotiated a lease with SC del Sol Soccer Club for a 1,203 square foot space north of the northeast corner of Union Hills Drive and 32nd Street in Phoenix. The landlord was represented by Phil Tomlinson of Commercial Properties. The new location is a relocation for SC del Sol’s business office and will open in January.
  • ZikWid Electronic Cigarettes signed a lease for a 1,348 square foot space at Tatum Place Neighborhood Shopping Center on Thunderbird and Tatum in Phoenix. Velocity Retail Group’s Jim Edwards, Larry Miller, and John Jackson represented the landlord, and Nick DeDonna of Strategic Retail Group represented the tenant in the negotiation. This will be ZikWid’s third location and will open for business in February.
  • Representing the landlord, Valle del Sol Shopping Center on Warner & Dobson in Phoenix, Velocity Retail Group’s Larry Miller, John Jackson and Jim Edwards leased a 1,251 square foot space to Oneself Therapy. The tenant signed a 3-year lease and will open for business in February.
  • Miller, Jackson and Edwards also represented the landlord at Anthem Eastside Shops on Anthem Way and Venture Drive in Anthem, on a 2,385 square foot lease with Rhapsody School of Music. Rhapsody is relocating and expanding their operation in Anthem, increasing their teaching space and adding retail offerings. The new school will open in March.
Mattress Firm, Velocity Retail

Velocity Retail Negotiates First Mattress Firm Supercenter for Arizona

The first Arizona, large-format Mattress Firm is coming to Scottsdale in the first quarter of 2014. The 23,958 square foot outlet store will be one of the largest Mattress Firm Supercenters in the country, and will offer buyers a huge selection of mattress choices at outlet prices.

Typically seeking stores between 3,500 and 5,000 square feet, Mattress Firm approached Darren Pitts, Executive Vice President of Velocity Retail Group with a special request; find a warehouse-sized space in an affluent location with high-traffic, national tenants, and great visibility. The new store, located in Sonora Village at the southwest corner of Frank Lloyd Wright Boulevard and Loop 101, offers all of that and more.

Pitts and Michael Clark, Vice President with Velocity, identified the center with co-tenants such as Walmart Supercenter, Sam’s Club, Best Buy, Staples and Kohl’s, the center draws thousands of shoppers every day. The intersection has excellent access to Loop 101 on- and off-ramps at both the Frank Lloyd Wright and Raintree interchanges. The new store’s location also boasts phenomenal visibility to Hayden Road, Frank Lloyd Wright Boulevard, and the Loop 101. Traffic passing the site exceeds 130,000 cars per day.

“Mattress Firm continues to strengthen its leadership position and this location speaks volumes about to their continued commitment to the Phoenix marketplace. This dominant flagship location in North Scottsdale is at the convergence of the Loop 101, Frank Lloyd Wright Boulevard, and Hayden Road will serve the affluent Northeast Phoenix and North Scottsdale trade areas. We were pleased to have secured such a prominent location in this important submarket for our client,” said Pitts.

Founded in Houston, TX in 1986, Mattress Firm is one of the nation’s premier specialty bedding retailers, offering a broad selection of both traditional and specialty mattresses, bedding accessories and related products. With the largest geographic footprint in the United States among multi-brand mattress specialty retailers, Mattress Firm not only provides sleep solutions, but opportunities in hundreds of communities.

VelocityRetail_MattressFirm_SonoraVillage

Velocity Retail Releases Recent Transaction List

Velocity Retail Group, LLC completed transactions totaling nearly 250,000 SF. A summary of each transaction follows:

 

Velocity Retail Group’s Darren Pitts and Michael Clark negotiated a lease with Mattress Firm for 23,958 square foot space at Sonora Village located on the southwest corner of Frank Lloyd Wright and Loop 101 in Scottsdale. The landlord was represented by Zach Pace of Phoenix Commercial Advisors. The store will be a unique, outlet-format for Mattress Firm, which accounts for the larger store-size, and is expected to open in the first quarter of 2014.

 

Goodwill Industries of Central Arizona has chosen the Prescott Valley Shopping Center at the northeast corner of Highway 69 and Lake Valley Road in Prescottfor a 25,076 square foot, build-to-suit store. The 15 year lease with Prescott Valley Shopping Center, LP was negotiated by Andy Kroot of Velocity Retail Group.

 

Deseret Book Company finalized a lease re-negotiation on their 5,000 square foot lease with RED Development at Chandler Festival Shopping Center, Chandler Road and Loop 101 in Chandler. Larry Miller, John Jackson, and Jim Edwards of Velocity Retail Group represented the tenant in the negotiation, which resulted in a 30% savings on the remaining lease balance.

 

Andy Kroot of Velocity Retail Group represented the tenant, Krispy Kreme Doughnuts in a six year lease of a 1,910 square foot retail space located at the Promenade at Casa Grande Regional Center, Casa Grande. The tenant plans to open for business in the first quarter of 2014. The landlord, Casa Grande Retail, LLC, is owned by Macerich.

 

Velocity Retail Group’s Dave Cheatham and CBRE’s Mark Krison represented Mega Furniture in a 144,000 square foot warehouse transaction at 3941 W. Mohave Street in Phoenix. The landlord, Amir Development Company, of Beverly Hills, California was represented by Don MacWilliam from Colliers International. This represents an expansion and relocation from Mega Furniture’s existing location at Van Buren and 51st Avenue. The company is tripling the amount of warehouse space to accommodate growing sales, and 10 Valley locations. The facility is expected to open in the first quarter of 2014.

 

Velocity Retail’s Darren Pitts represented the tenant, Arizona Room Store in the lease of a 33,862 square foot space at Happy Valley Towne Centre on the southeast corner of Happy Valley Road and the I-17 in Phoenix. The space was previously Circuit City. The landlord Vestar Development, was represented by Eric Termansen of Western Retail Advisors. This is the 12th Arizona location for The Room Store, and is expected to open the first quarter of 2014.

 

Darren Pitts and Michael Clark represented the tenant, Mattress Firm in a five year lease of 3,737 square feet at Tatum Pointe on the southwest corner of Tatum Road and Bell Road in Phoenix. The landlord, West Valley Properties, was represented by Regan Amato of Phoenix Commercial Advisors. After a total redesign of the exterior of the space, the store opened in November.

 

E-Vapor Zoneleased a 975 square foot space at Corona del Sol on the southeast corner of Ray Road and Rural Road in Tempe.The landlord, Pacific West Land was represented by Larry Miller, Jim Edwards, and John Jackson of Velocity Retail Group. This is the first Arizona location for E-Vapor Zone and is expected to open in January, 2014.

 

Dubliner Irish Pub & Restaurant extended their lease of a 5,300 square foot space at Paradise Square located on the southwest corner of Thunderbird Road and 40th Street in Phoenix. Velocity Retail Group’s Jim Edwards, John Jackson and Larry Miller represented the tenant.The landlord, Manatee Investments, was represented by Case Huff & Associates. The negotiations resulted in a rent reduction for the remaining 10 months of the current lease term and saved the tenant over $30,000.

Phil Kwiecinski, Velocity

Phil Kwiecinski Joins Velocity Retail

Velocity Retail Group announces that Phil Kwiecinski has joined the firm as Director of Operations and for its affiliated development services company Accelerated Development Services.

Kwiecinski, brings his vast experience as a 10-year veteran of CBRE’s Phoenix office where he was the Senior Operations Manager and most recently the Regional Operations Manager for the states of Arizona, Nevada, Utah and New Mexico. In these roles he was responsible for the oversight of administrative day to day operations for five offices and had full operational accountability for budgeting, forecasting, profit and loss, business planning and human resource functions.

Dave Cheatham, President of Velocity Retail Group commented, “We are excited to have someone with Phil’s experience join us on the operations side. He will focus on fine-tuning our client services and bringing this to a level not obtainable to most retail brokerage firms of our size.”

Phil is a long-time colleague with a proven track record in his field of expertise. We worked together for several years managing the Phoenix CBRE office. Having him at Velocity Retail will enhance our ability to provide the highest level of service across all of our business platforms. We are pleased to be able to work together again,” said Greg Coxon, Chief Operating Officer.

The core group at Velocity Retail was with CBRE until April of 2005, they have worked together for many years. Bringing the experience of a larger firm into the client-centric environment at Velocity Retail Group and Accelerated Development Services is a winning combination on many levels.

Having spent many years at larger firms I am looking forward to applying those principals to a smaller innovative environment that can react quickly to changing market needs,” said Kwiecinski. “I am excited to be together again with my former associates. They are a successful group that have fine-tuned their process and focus solely on serving the client,” he added.

rsz_davecheatham_velocityretail_small_2013

Op-Ed: Slow and Steady Wins the Race for Phoenix Retail

Author: Dave Cheatham, President, Velocity Retail Group, LLC

 

Dave Cheatham

Dave Cheatham is an accomplished authority on retail real estate in the disciplines of brokerage, project leasing, development, consulting and advisory services. He is a senior advisor to merchants, entrepreneurs, investors and senior retail executives throughout the industry.

As we are nearing the end of 2013 there have been several positive trends and factors that have influenced the Phoenix retail real estate market. These factors are being recorded in economic improvement such as job growth, housing prices, and personal income increases as well as the retail real estate market’s increased leasing activity.

Velocity Retail Group has recorded a strong increase in big box leasing, with an increase of over 20% above last year. Our research department is predicting this trend to continue into 2014 and 2015. This increase will be evident by increased activity from many retailers who have been on the side lines for the past 4 or 5 years and are now gearing up to expand their store count. Value retailers, who have been very active during this past recessionary cycle, are still expected to show strong activity in the next twelve to twenty-four months. In addition, the Phoenix market should experience new retail concepts announcing expansion plans both regionally and nationally. These concepts have been unable to expand the last five years due to the economy, but they are now gearing up for growth. Velocity Retail Group is projecting strong leasing activity for year-end 2013 with nearly 2 million square feet absorbed. This amount of absorption will drive the vacancy down close to single digits by year-end.

This is supported by the 3rd quarter retail numbers from Velocity Retail Group’s research department when analyzing the big boxes in our market (those that are over 10,000 square feet). In fact, a greater number of big box deals have been completed during 2013 than we have had in four years. For 2013 there have been 39 big box deals completed. If this pace continues through the rest of the year we will be 20% above the leasing of last year, and nearly 75% above 2011. We are now at 297 vacant big boxes throughout metropolitan Phoenix.

We are forecasting a continued slow and steady improvement in our vacancy with the vacancy rate in 2014 breaking into the single digits. Leasing activity for the year is over 1.5 million square feet and on track to reach over 2 million square feet by year end.

Each of the regional areas in metropolitan Phoenix has shown significant improvement in vacancy since the beginning of 2013. In fact, at the start of the year all of the six regional trade areas had double-digit vacancy. Now, as of the 3rd quarter, four of the six regional areas have single-digit vacancy.

With three quarters of the year behind us we continue to see increased improvement in several key benchmarks for the Phoenix area:

 

  • Job Growth – Arizona heads the list of best states for expected job growth according to an article published by Forbes
  • Housing Prices – continued increase in the median home price, now at $192,000, which is a 30% year-over-year improvement
  • Personal Income – up over 5% since 2012
  • Retail Sales – up over 5.5% from 2012

These indicators solidify our projections of continued improvement in the retail real estate market in Phoenix. A rebound is under way and 2014 will be a pivotal year in laying the foundation for improved future growth, expansion and economic prosperity for Arizona.

 

Union Hills at 91st Avenue.

Velocity Retail Releases Recent Transaction List

Velocity Retail Group, LLC completed eight transactions in September. A summary of each transaction follows:

  • Michael Clark and Dave Cheatham of Velocity Retail Group represented the landlord, Accelerated Development Services and Wadsworth Development in a 20-year ground lease of 1.73 acres located at the SWC of Gilbert and Germann in Chandler. The Tenant, First Choice ER, was represented by Todd Folger of CBRE in Phoenix. The tenant plans to build an approximate 6,500 SF facility, and be open for business by second quarter of 2014.
  • Goodwill of Central Arizona finalized a 25,000 SF build-to-suit lease with DTD Devco 12, LLC, an entity controlled by Desert Troon Companies, at Watson Marketplace, 441 South Watson Road in Buckeye.  Andy Kroot of Velocity Retail Group represented the tenant.
  • Take or Bake Pizza has chosen Agua Fria Towne Center at the NEC of Camelback Road and Loop 101 for its first Phoenix location. The tenant leased 1,100 SF from Oak Tree Three Investments, LLC in a new five-year deal. Nick DeDona with Strategic Retail Group represented the tenant. Judi Butterworth and Nick Ault of Velocity Retail Group represented the landlord.
  • Velocity Retail’s Dave Cheatham and Nick Ault represented the tenant, My Pigsty in the lease of a 34,000 SF space at Chandler Pavillions II on the SEC of Harrison and 54th Street in Chandler.  The landlord, MDI 154, LLC was represented by Mike Polachek of SRS Real Estate Partners. The space was previously occupied by Ultimate Electronics.
  • Judi Butterworth and Nick Ault represented the landlord, Shambhala Development, LLC in two separate lease transactions totaling 4,204 SF at the Peoria Plaza Shopping Center, located at the SWC of Union Hills and 91st Avenue in Peoria. Westbrook Animal Hospital leased a 3,004 SF space and was represented by John Appelbe of Cassidy Turley. In a second transaction, Awen’s Day Spa leased 1,200 SF.
  • NextCare Arizona, LLC leased a 4,086 SF space at 8101 N. 19th Ave., Suite A, in Phoenix. The landlord, Kling/Stong Trust was represented by Andy Kroot of Velocity Retail, and the tenant was represented by Ed Beeh and Robbie Petty of SRS Real Estate Partners. The space was formerly an O’Reilly Auto Parts Store.
  • Rod Works leased a 2,488 SF space at The Shops at Norterra, located at 2480 W. Happy Valley Rd., Phoenix. Velocity Retail Group’s Jim Edwards and Larry Miller represented the tenant. The landlord, RED Development/USAA, was represented by Heather Randall of RED Development in Phoenix. This will be Rod Works second valley location, and is set to open in November of this year.
Arcadia Towne Center – NWC Indian School and 48th Street, Phoenix – anchored by Safeway and Tutor Time, the center has 4,327 SF of shop space available.

Velocity Retail Group Awarded 1.5 MSF Leasing Portfolio From NorthStar

A leasing portfolio of 1.5 million square feet of retail shopping centers located throughout metropolitan Phoenix has been awarded to Velocity Retail Group. The owners, NorthStar Realty Finance Corp. based in New York have a total real estate portfolio valued at over $3.5 billion nationwide. The Phoenix portfolio consists of 11 separate properties located in Phoenix, Glendale, Chandler, and Mesa, Ariz. The shopping centers have anchor tenants ranging from traditional grocery stores, to educational facilities, and mass merchandise retailers.

“After reviewing the capabilities of several firms for this assignment, we awarded the listings to Velocity Retail as our company valued several of their key competencies,” said Eric Schleif, Vice President of NorthStar’s Dallas office. “Velocity’s broad range of experience in successfully leasing big box space, repositioning centers to alternative uses, and effectively handling shop space and pad leasing fit all of our needs for these properties,” he added.

NorthStar Portfolio of Properties

  • Sun Village Fair – NEC Warner Road and Alma School Road, Chandler – this center is anchored by Fry’s, Beall’s Outlet and Wal-Mart. With 14,340 SF available, and additional pad opportunities on 2.9 acres.
  • Southern Sunset Plaza – SWC Southern Avenue and Country Club Drive, Mesa – anchored by Carrington College, the center has 82,726 SF available.
  • Arcadia Towne Center – NWC Indian School and 48th Street, Phoenix – anchored by Safeway and Tutor Time, the center has 4,327 SF of shop space available
  • Shea Plaza III – NEC Shea Boulevard and 32nd Street, Phoenix – anchored by Basha’s and Walgreens, this center has 7,195 SF of shop space available.
  • Lone Mountain Landing – NEC Lone Mountain and Cave Creek Road, Phoenix – this center is anchored by Foothills Academy and Tutor Time and has 13,038 SF available.
  • Moon Valley Towne Center – SEC Bell Road and 7th Street, Phoenix – Anchored by Fry’s and Hobby Lobby, there is 6,898 SF available in the shops building.
  • Metro Power Center – SWC N. Metro Parkway West and Cheryl Drive, Phoenix – Anchored by Old Country Buffet, the center has 114,156 SF available and is on the ring road of MetroCenter Mall.
  • Park Northern – NEC Northern Avenue and 35th Avenue, Phoenix – anchored by Safeway and Chuck E. Cheese, this center has 30,623 SF available.
  • Bethany Towne Center – NEC Bethany Home Road and 35th Avenue, Phoenix – Anchored by Wal-Mart, Harbor Freight Tools and You Fit, this center has 26,399 SF available.
  • Peoria Station – SWC Peoria Avenue and 67th Avenue, Glendale – anchored by Safeway, LA Fitness, Tutor Time, and Peter Piper Pizza, this shopping center has 42,830 SF available.
  • Westporte Village – SEC Peoria Avenue and 67th Avenue, Glendale – anchored by Wal-Mart Neighborhood Market, this center has 41,389 SF available.

NorthStar also has retained Phillips Edison, who will continue as the property manager for all of the assets.

Over the past several years Velocity Retail Group has focused their resources and personnel on becoming a solution to the glut of over 285 vacant big boxes scattered throughout the Phoenix metropolitan area. The company started a division focused solely on finding adaptive re-uses for vacant retail boxes throughout the West. The REstorEd division was formed in 2012 to give owners and tenants an avenue to creatively repurpose retail centers that are either functionally obsolete, or are in an area where retail is no longer the highest and best use for the building.

The NorthStar portfolio has several big box leasing opportunities. Recently, Velocity Retail achieved a milestone when six vacant Albertson’s were leased, sold, or redeveloped in a little over a years’ time. The team at Velocity Retail Group has leased over 2 million square feet of vacant big boxes in the last three years and is consistently ranked by CoStar as one of the dominant companies for big box leasing.

“The NorthStar portfolio is very diverse and allows our company the ability to utilize a customized marketing plan to achieve optimum results for these assets,” said Darren Pitts, Executive Vice President at Velocity Retail. The shopping centers are located throughout Phoenix with many being anchored by grocery, educational or fitness tenants. Each property has a unique marketing strategy ranging from conventional leasing either in pads, shops or anchor space, to repositioning the center with non-traditional uses, or even a complete redevelopment of the asset. The strategy for each asset is geared to maximize the value of the shopping center and create a mix of tenants consistent with the needs of the surrounding trade area.

The marketing team is being spearheaded by Pitts, Dave Cheatham, Executive Vice President and Managing Principal, Michael Clark, Vice President, John Jackson, Larry Miller, Jr., and James Edwards, all Senior Associates with Velocity. “We have been able to leverage our unique resources, expertise and market intelligence to provide the best possible plan for each of these shopping centers,” said Pitts. “NorthStar has specific goals for each asset, which our plan is designed to achieve.”

FurnitureStore

Scottsdale Parcel Sells for $2.8 Million to Make Way for La-Z-Boy Showroom

A Scottsdale-based firm paid $2.8 million to develop a parcel at 6828 E. Camelback Rd. with plans to construct a La-Z-Boy Furniture store that is expected to break ground this October. A 10,096 SF, Class C office building built in 1978 was demolished to make
way for the new retail building.
The 27,878 SF parcel is located just east of the intersection of Camelback and 68th St. The intersection has been the focus of increased construction activity in the last year as an apartment complex on the SE corner was demolished to make way for a new upscale apartment community called Optima Sonoran Village.
RRKBob Kling, Principal with Lee & Associates Arizona represented the seller, TD Note, LLC of Paradise Valley. Bob Crum of Ross Brown Partners and Darren Pitts of Velocity Retail Group represented the buyer Beft Camelback, LLC.
“This prime location near Scottsdale Fashion Square and other amenities provides a great opportunity for La-Z-Boy,” said Kling. “Add in as many as 576 upscale apartments to be constructed across the street and they could have a strong customer base at their doorstep.”

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ICSC's RECon 2013: The Perfect Retail Storm

 

The International Council of Shopping Center’s (ICSC) 2013 RECon 2013 has come to a close. This year the attendance was up 10% from 2012 with nearly 35,000 attendees from all types of companies making a strong showing.

This is my 28th ICSC event and each one is unique in its own way. What I found encouraging with this year’s event was that for the first time since 2008 people were not talking about the mood of the market, they were talking about business.

With exhibitors ranging from large REITS, developers, investors, brokers, retailers, suppliers and service providers the theme was the same. Most were discussing moving forward.

The “perfect retail storm” is brewing with the following factors present:

>> Almost no new construction for the past five years;

>> Capital markets improving as debt is available;

>> Investors are competing for a smaller pool of assets to purchase;

>> Vacancy rates are declining in many major markets:

>> Rents are ticking slightly upwards.

However, this “perfect retail storm” is a good storm. We believe that the remainder of 2013 will continue to improve from an absorption and vacancy perspective in Phoenix. Velocity Retail has projected that the Phoenix area vacancy will be closing in on single digits by the end of 2013.

In the NNN investment arena, large REITS, institutions, and pension funds are invading the space previously occupied by private investors causing a compression of cap rates driving them down even further.

Arizona is getting back on the radar screen for viable expansion from national retailers and restaurants. Interest is up from many retailer categories which include discounters, farm and home suppliers, quick serve restaurants and box retailers. With the improved mood and positive vibe from the Leasing Mall we can only hope that this will carry into increased absorption in the Arizona retailer marketplace.

We are looking with continued optimism to 2014 and 2015 bringing back an appetite for retailer expansion along with improved store sales after our long pause that began in 2008.