Tag Archives: Velocity retail Group


Velocity Retail Group's Andy Kroot Negotiates Deal to Bring Goodwill Store to Fountain Hills


Andy Kroot of Velocity Retail Group announced that Goodwill of Central Arizona is set to open a new retail store in Fountain Hills. The store is at 13757 N. Fountain Hills Blvd.

“We’re relocating the existing store into a newer and larger space,” said Jackie Halleen, vice president of retail operations. “Fountain Hills is a growing area and we’re proud to be opening a new store for our shoppers. They will be able to find great deals on name brand clothes, furniture, home goods, toys and more.”

Kroot represented Goodwill.

“We are happy to be able to help Goodwill expand their presence in Arizona and visibly see the positive impact each store makes within the community,” Kroot said, “We look forward to opening more successful Goodwill stores in the Phoenix market.”

The grand opening is set for April 12.


Lindsay and Warner location.

Velocity's Andy Kroot Completes Pair of Deals For Goodwill Stores


Velocity Retail Group’s Andy Kroot announced that Goodwill of Central Arizona signed two new leases in February.

Goodwill leased the 25,740 SF former Whole Foods building at the NEC of Lindsay and Warner in Gilbert. The store is expected to open in 2Q 2013. Goodwill also completed a 14,400 SF, 10-year lease is San Luis. That store is expected to open in 3Q 2013.

“We are honored to be able to help Goodwill of Central Arizona expand their presence in Arizona while positively impacting the community with each new store,” Kroot said. “Goodwill now has well over 60 stores in the area with many more planned for 2013/2014; we are continuing to search for great, high traffic locations.”

With 65 years of serving central Arizona’s communities, Goodwill of Central Arizona is one of the oldest and largest nonprofit agencies in Arizona. In 2012, it served more than 42,000 youth and adults on their quest toward self-sufficiency and secured more than 15,563 employment opportunities.

In another transaction, Kroot announced that Capriotti’s Sandwich Shop/Everything Bagel will be moving into the former Schlotsky’s Deli in Old Town Scottsdale at the SEC of Scottsdale and Indian School roads.

Capriotti’s Sandwich Shop has five other stores in Metro Phoenix.


Bell Tower Plaza

Velocity Retail Group February Transactions


Velocity Retail Group completed six transactions in February ranging in size from 3,850 SF to 25,740 SF. A summary of each transaction follows:

>> Goodwill of Central Arizona leased the 25,740 SF former Whole Foods building at the NEC of Lindsay and Warner in Gilbert. The sublessor, Whole Foods Market, Inc. was represented by Adam Madison at Cushman Wakefield. Goodwill was represented by Andy Kroot of Velocity. The store is expected to open in the 2Q of this year.

>> Velocity Retail’s Darren Pitts and Mountain West Retail’s Chad Moore and Jeff Harrison represented Mattress Firm in a 10-year, 5,234 SF store in Idaho Falls, Idaho. The store is located in the former TGIF restaurant building at 2625 S. 25th East in Ammon, Idaho. The store is expected to open in May of this year.

>> Andy Kroot of Velocity Retail completed a 14,400 SF, 10-year lease to Goodwill of Central Arizona in San Luis. The building is at 301 Piceno Dr. The owner of the shopping center is JO-AZ, LLC. The store is expected to open in 3Q 2013. This brings the total of Goodwill stores to more than 60 in Arizona.

>> Mattress Firm leased a 3,850 SF building at 7871 N. Oracle Rd. in Oro Valley in the Entrada del Oro Shopping Center. The tenant was represented by Darren Pitts of Velocity Retail. The landlord, Wright-Pantano, LLC was represented by Terry Dahlstrom of Volk Company. The store is expected to open in May of this year and will be the 12th store in the market.

>> Velocity Retail’s John Jackson, Nick Ault and Michael Clark represented the landlord of Bell Tower Plaza at the NWC of Bell Rd. and 63rd Ave. in Glendale in a 5-year, 8,108 SF transaction with Pawn 1st. The new store is expected to open in August of this year.

>> Mattress Firm finalized a 12-year lease for a 4,000 SF retail space at the NWC of Kino and Interstate 10 in Tucson in The Bridges shopping center. The Landlord, Tucson Retail, LLC is out of Boise, Idaho and was represented by Land Advisors Organization’s Randy Titzck and Chad Russell. Darren Pitts of Velocity represented the tenant in the transaction. The store is expected to open in 1Q 2014.



Velocity Retail Finalizes BBB Fashion in Desert Sky Festival Shopping Center


Velocity Retail Group announces that BBB Fashion has leased 14,128 SF at the Desert Sky Festival shopping center at SEC Thomas Rd. and 75th Ave. in Phoenix.

Judi Butterworth of Velocity Retail and Paul Serafin of De Rito Partners represented the Landlord Westfest, LLC.

Larry Miller and James Edwards also of Velocity represented the tenant. The tenant recently opened for business and is holding their grand opening.



Velocity Retail Negotiates for Old Navy in Tucson Shopping Center; Brings Baby Town to Gilbert


Velocity Retail Group announces that Old Navy leased 15,039 SF at the Tucson Spectrum shopping center at the SWC of Irvington and Interstate 19 in Tucson.

Darren Pitts and Dave Cheatham of Velocity Retail represented Old Navy in the transaction. The current shopping center owner is Developers Diversified Realty, which purchased the center during the final stages of the Old Navy transaction from Barclay Creswin Tucson Spectrum, LP of Phoenix.

The new store opened in November of 2012 and was one of a handful of new stores that Old Navy completed in the calendar year.

“Like many national retailers, new store growth has been on pause during the last several years of the recession,” Pitts said. “This store was originally reviewed in 2006 and then tabled until recently. The fact that Old Navy chose Tucson as one of their new store locations nationally for 2012 is extremely positive,” he added. This is the fourth store for Old Navy in the Tucson market, and the 18th store in Arizona.

In another transaction, Velocity’s Judi Butterworth negotiated a 28,000 SF lease with Baby Town, LLC for the Crossroads Towne Center at the SEC of the Loop 202 and Gilbert Road in Gilbert.

This will be Baby Town’s first store. Five years ago, the owners, Ocean and Tracy Zhang, sold costumes from their garage online. Now their ecommerce business employs 10 year-round and 60 seasonal employees.

They saw a strong market demand for offline baby products where customers could see, touch, and test the products. They decided to open a new baby store to offer a large one-stop shopping destination for the East Valley.

Butterworth utilized Velocity Retail’s analysis of big boxes throughout the Phoenix area and completed a thorough study of various trade areas in the Phoenix metropolitan area in order to determine the best location for Baby Town.

“The tenant was analyzing Phoenix vs. Austin Texas and Phoenix won,” she said. “After they were able to see the quality of the real estate, the future growth potential in Gilbert and favorable family demographics it was just a matter of negotiating the best terms for the tenant.”

Baby Town specializes in children up to age 3. It has several departments including maternity, baby gear, furniture, clothing, toys, diapers, formula, gifts, and accessories. Their large baby play area will allow parents to test-drive new toys with their babies, and provides a social outlet to meet other new parents.


Campus Village West, Thunderbird and 49th Ave. in Glendale.

Velocity Retail Group January Transactions


Velocity Retail Group completed 8 transactions in January totaling more than 250,000 SF. A summary of each transaction follows (including one in Utah):

>> Judi Butterworth represented the tenant in a 5-year, 30,000 SF deal at the NEC of Germann/Gilbert in the Crossroads Towne Center shopping center. The tenant is Baby Town, a new concept to the Phoenix retail scene. This will be its first location. Western Retail Advisors represented Vestar Development Company in the transaction. The store is expected to open in May 2013.

>> Michael Clark and John Jackson represented the seller of a 4.87-acre parcel at the NWC of Coldwater Springs and Avondale Rd. in Avondale. The buyer, Moreland Properties was represented by Haugen Commercial, George Haugen. The buyer is a speculator intends to hold the parcel for future resale.

>> John Jackson, Nick Ault, and Michael Clark represented the landlord at Crossroads Plaza at the NWC of Peoria and 67th Ave. in a 5-year 1,200 SF smoke shop. The tenant’s trade name will be 59th Avenue Smoke Shop, Inc. and is expected to open in February.

>> Mattress Firm finalized a 5-year lease for a 6,539 SF retail space at 4035 Riverdale Rd. in Riverdale, Utah. The shopping center is called Riverdale Shopping Center and has R.C. Willey, Best Buy, JC Penney, Lowe’s, TJ Maxx, and Ulta as co-tenants. Darren Pitts of Velocity and Chad Moore of Mountain West Retail represented the tenant in the transaction. The Landlord, Riverdale II S. C., an entity controlled by The Boyer Company, was represented by Coldwell Banker, BRG. The store is expected to open in April of this year and will be the 16th location for this tenant in Utah.

>> John Jackson, Nick Ault, and Michael Clark represented the landlord of Bell Tower Plaza at the NEC of Bell Rd. and 63rd Ave. in a 5-year 1,040 SF restaurant by the name of Sushi Catcher. The tenant is expected to open in February.

>> Andy Kroot represented Goodwill Industries of Central Arizona in a 1,601 SF donation center at Fulton Ranch Towne Center at the SEC of Ocotillo and Arizona avenues in Chandler. The landlord of the shopping center is RED Development of Ocotillo, LLC. The tenant is expected to open in March.

>> John Jackson, Nick Ault, and Michael Clark represented the Vector Commercial Properties, the owners of Campus Village West at the NWC of Thunderbird and 49th Ave. in Glendale in a new 5-year lease of 750 SF for Mystic Tobacco. The tenant recently held its grand opening.

>> John Jackson, Nick Ault, and Michael Clark represented the owner of Greenway Crossing at the NEC of Loop 303 and Greenway Rd. in Surprise in a 5-year 1,589 SF lease transaction for Mr. Goodcents Deli Fresh Subs. The tenant was represented by SR Commercial’s Tyson Switzenberg. The tenant opened in January.


Greenway/Loop 303

Velocity Retail Group's December Transactions


Velocity Retail Group completed 11 transactions during the month of December totaling 300,000 SF. A summary of each:

>> SKB Companies sold a 62,610 SF former Albertson’s grocery store for $1M at the SEC of Main and Dobson in Mesa to Ultimate Consignment. Michael Clark and John Jackson of Velocity Retail represented SKB in the transaction. The buyer was represented by Zak Kotter of LevRose Real Estate.

>> Madison Development Group sold a 5,057 SF fully-lease Mattress Firm building to American Realty Capital. The building is in Bountiful, Utah. Madison recently purchased the land and constructed the building for the Tenant. The seller was represented by Darren Pitts of Velocity Retail and Chad Moore and Jeff Harrison of Mountain West Retail of Utah. The buyer was represented by Jonathan Moseley of 360 RE in Houston.

>> Winco Advisors purchased two retail buildings in December both brokered by Andy Kroot of Velocity Retail. The first transaction, was a 14,691 SF shopping center at the SEC of Greenfield and McKellips Roads in Mesa. The center was built in 2008 and includes regional and national tenants such as Starbuck’s, Chase Bank, T-Mobile, NextCare, H & R Block, Jamba Juice and Café Mix. The 100% leased property was listed by Michael Hackett and Ryan Schubert of Cassidy Turley.

In a second transaction, Andy Kroot represented Winco Advisors, which purchased a 5,000 SF, 100% leased commercial building in the Lake Air Mall shopping center in   Waco, Texas.

>> Woodlands Village Shopping Center in Flagstaff, at 2600 Woodlands Village Blvd., sold to CCA Acquisitions Company. The 91,910 SF center, owned by PDC Community Centers was co-listed by Velocity Retail’s Darren Pitts and Ron Ault, and Mountain West Retail’s Ben Brown. Brown also represented the buyer in the $17.26M transaction which closed in December.

>> Zeeks Pizza & Wings signed a 2,400 SF, 5-year lease at the SEC of Warner Rd. and 48th St. in Ahwatukee, which will open in the spring of 2013. The Landlord was represented by Velocity Retail Group’s Michael Clark and Nick Ault. The tenant was represented by Joel Gunning of West USA Realty.

>> Raising Cane’s signed a 20-year, 3,552 SF build-to-suit deal at Gateway Crossing at the SWC of McDowell and 99th Avenue in Phoenix. The Landlord was represented by Michael Clark and John Jackson of Velocity Retail, and the tenant was represented by Mark Bramlett of Cassidy Turley BRE. The store is slated to open in the summer of 2013.

>> Krispy Kreme signed a 5-year deal at Plaza del Sol shopping center at Indian School and 33rd Ave. in Phoenix. The 1,769 SF store will open in 2Q 2013 and is the fifth location for the franchise group in the Phoenix area. Andy Kroot represented the tenant, and Kimco is the Landlord.

>> Wadsworth Development and Accelerated Development sold a fully-leased 12,000 SF building occupied by Mattress Firm. The building is at Hwy. 89 at the entrance to Flagstaff Mall to Aspen Properties. The NNN deal was listed by Darren Pitts and Ron Ault of Velocity Retail, the buyer was represented by Tom Knaub of Colliers International.

>> Velocity Retail’s John Jackson and Michael Clark represented the landlord of the NEC of Greenway/Loop 303 in Surprise on a 14-year lease transaction with West Valley Dental Group has opened a 3,306 SF Peoria Family Dentistry office.

>> Wadsworth Development and Accelerated Development purchased a 75,795 SF parcel at the SWC of Germann and Gilbert in Chandler. The parcel was sold by Exxon Mobil Foundation and is one of the last remaining parcels at the popular intersection. The buyer was represented by Dave Cheatham of Velocity Retail and the Seller was represented by Mindy Korth of CBRE. The buyers plan to build retail shops on the parcel in 2013.


Velocity Retail Group

Velocity Retail Group Reports First Retail Absorption Since Recession

Phoenix Metropolitan retail recorded positive net absorption for the third straight quarter as recorded in statistics just released by Velocity Retail Group through June 30, 2012.  This is the first positive absorption recorded since before the “Great Recession” in November of 2008. After 12 consecutive quarters of negative absorption, the last three quarters of positive absorption signal a healing that has begun and shows that we are well on our way to a solid recovery.

Dave Cheatham, managing principal of Velocity Retail Group commented on this positive trend, saying, “Since late 2011 we have been seeing an up-tick in retailer activity.  National tenants are exploring their expansion opportunities, value oriented retailers have been taking advantage of the big box spaces that have been vacant, and local and regional tenants are opening new stores.

“Landlords are figuring out how to structure deals with quality tenants, and fill those empty spaces,” said Cheatham. “Whether it’s a combination of free rent, additional build-out monies, or favorable rent structures for the first few years, they’re getting it done.”

Michael Clark, vice president at Velocity, states, “There is over 1.2 million square feet of net absorption through the second quarter of 2012.  The Phoenix retail market has not seen annual positive absorption since 2008. The overall vacancy rate for Metropolitan Phoenix has been showing consistent improvement in the past year with a recorded decline of over one percentage point in the past year.  This is extremely good news.”

Velocity Retail reports second quarter of 2012 ended with a vacancy rate of 12.2%.  Just one year ago, in the second quarter of 2011, the vacancy rate was 13.4% which is an improvement of 1.2% in this twelve month period.

Velocity Retail Group sees a favorable outlook for the Commercial Retail market for 2012.  With improved tenant activity from national and local retailers, and some of the obsolete retail spaces being absorbed by non-retail uses (such as schools, medical facilities or call centers), the vacancy rate should continue improve and by mid-2013 be between 9.9% and 10.5%.

For more information on Velocity Retail Group, visit their website at www.velocityretail.com.


2011 RED Awards Winners & Honorable Mentions

On Feb. 22, AZRE hosted the 6th Annual, 2011 RED Awards reception at the Ritz-Carlton in Phoenix to recognize the most notable commercial real estate projects of 2010 and the construction teams involved. AZRE held an open call for nominations and more than 100 architects, contractors, developers and brokerage firms participated in the process. All the winning projects and brokers are featured on the following pages.

View pictures from the 2011 RED Awards.
View the 2011 RED Awards candid shots as well.

2011 winners can order Awards, Plaques & Reprints

The project categories include:

  • Office
  • Industrial
  • Medical
  • Mixed-Use
  • Most Challenging
  • Hospitality
  • Multi-Family
  • Retail
  • Sustainable
  • Redevelopment
  • Public
  • Education
  • Tenant Improvement

  • Developer of the Year
  • Architect of the Year
  • General Contractor of the Year
  • Broker/Broker Team of the Year

Congratulations to all the 2011 RED Awards Winners

Best Hospitality Project, Small:


The Phoenician Ballroom Expansion

Best Hospitality Project, Large:


Talking Stick Resort

Best Industrial Project:


Keller Electrical

Honorable Mention:

Power-One (Phase I & II)

Best Medical Project:


Diamond Children’s Medical Center at UMC

Honorable Mention:

Ryan House at St. Joseph’s Medical Center

Best Mixed-Use Project:



Honorable Mention:

Gila River Indian Community, District One Service Center

Most Challenging Project:


Soleri Bridge & Plaza

Honorable Mention:

Maricopa County Security Building

Best Office Project:


Chandler City Hall

Honorable Mention:

Mercy Medical Commons

Best Multi-Family Project:


Vi at Silverstone

Honorable Mention:

Sagewood, Phase 1

Brokerage Team: Leasing


Tom Adelson, Kevin Calihan

Jim Fijan, Jerry Roberts

CB Richard Ellis

Brokerage Team: Sales


Tyler Anderson, Sean Cunningham

CB Richard Ellis

General Contractor of the Year:


Sundt Construction

Best Retail Project:


Mountain Ranch Marketplace

Honorable Mention:

Scottsdale Pavilions – Theater/Food Court Renovation

Most Sustainable Project:


White Tank Branch Library & Nature Center

Honorable Mention:

CREST Specialty School

Best Redevelopment Project:


Phoenix-Mesa Gateway Airport

West Terminal Expansion Phase I

Honorable Mention:

Cowley Companies Warehouse Office

Best Public Project:


Musical Instrument Museum

Honorable Mention:

Randall McDaniel Sports Complex

Best Education Project:


Sedona-Oak Creek

Red Rock High School

Performing Arts Center

Honorable Mention:

Mesa Community College Red Mountain Campus

Best Tenant Improvement Project:


Lumberyard Tap Room

Honorable Mention:

Polsinelli Shughart

Special Merit:


Schuff Perini Climber

Broker – Leasing:


Andy Kroot

Velocity Retail Group

Broker – Sales:


Eric J. Wichterman

Cassidy Turley BRE Commercial

Developer of the Year:


RED Development

Architect of the Year:


RSP Architects

Presented by:

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Sponsored by:

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