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.”