Velocity Retail leases vacant big box in Chandler
Velocity Retail Group’s Dave Cheatham, Darren Pitts, Brian Gast and Brad Ranly represented the Landlord, FAE Ray & Rural, LLC in a 38,253 square foot lease to EoS Fitness at the southeast corner of Ray Road and Rural Road in Chandler, Arizona.
The owners of the building, Wadsworth Development Group in a joint venture partnership with Accelerated Development Services purchased the building in September 2017 and began to redevelop the 62,190 square foot building into two distinct spaces. Goodwill of Central and Northern Arizona occupies the balance of the building and held their grand opening last August.
“The team at Velocity Retail exceeded our expectations in finalizing leases for this project. The redevelopment of this building has transformed the entire shopping center and returned vibrancy to the center. With the superb location in the trade area, this project is a win-win for all concerned,” said Tim Locher, Senior Project Manager for Wadsworth Development Group. This transaction is one of over two dozen big box transactions recently completed by Velocity Retail Group. The firm continues to lead the retail market in big box leasing and sales.
SVN Multifamily team sells portion of Mesa Portfolio
SVN Desert Commercial Advisors has been growing their multifamily division over the last several months. New advisor, Kevin Weller graduate of the W.P. Carey School of Business at Arizona State University, brings his game to the commercial real estate industry and sells his first property in Mesa, AZ.
The original 34-Unit Mesa portfolio had an opportunity to sell 8 of the units in Amberwood Manor at a premium, in a separate transaction. Amberwood Manor is located at 260 W 8th Ave. Buildings 15 & 41 were part of this transaction which consisted of two fully occupied 4-plex condos. The transaction is unique in itself containing a value-add component to what is already a mostly turn-key property. The escrow period was a quick 45 days and sold for $680,000 in Mesa. There are still 19 continuous units left in this multifamily portfolio opportunity.
SVN advisor Kevin Weller stated, “I am happy that we were able to find a buyer for the first 8 units of this portfolio, but I am even more excited to get the rest of the portfolio sold to the right buyer.” The SVN team are representing the seller, Howard Utter and TW2 Properties LLC in these transactions. The new buyer is located in Southern California and was looking to add to his multifamily portfolio here in the Phoenix Valley.
CBRE completes sale of single-tenant Dutch Bros build-to-suit
CBRE has completed the $1.78 million sale of a new single-tenant property leased to Dutch Bros Coffee, located at 602 South Beeline Highway in Payson, Ariz. The 824-square-foot building, which was developed by SimonCRE as a build-to-suit for Dutch Bros, is the first Dutch Bros in Payson and benefits from the year-round tourism in the area.
Joseph R. Compagno and Benjamin Farthing with CBRE’s Phoenix office represented both the seller, Arizona-based developer, SimonCRE, and the buyer, Calif.-based Forman Family Trust.
“This project and sale really show the strength of Dutch Bros in the consumer market as well as the investment market,” said Joshua Simon, Founder and Chief Executive Officer, SimonCRE. “We knew this would be an attractive property with a significant potential for success in this area. We’re excited to have been a part of it.”
“We sourced a Northern California 1031 exchange buyer who was specifically looking for a new Dutch Bros Coffee investment,” said CBRE’s Farthing. “The buyer was attracted to the long-term, 15-year corporate lease and the company’s growth. We anticipate increased buyer demand for Dutch Bros moving forward.”
Dutch Bros Coffee was founded in Oregon in 1992 and has over 300 locations in seven States with plans to grow to 800 stores in the next five years.
Kidder Mathews negotiates $1.6 million, long-term lease
The Phoenix Kidder Mathews healthcare team represented the landlord in a long-term lease totaling $1.6 million at Mescal Medical Park, 10900 N. Scottsdale Rd., in Scottsdale, Arizona.
The team of Senior Vice President Michael Dupuy and Vice President Rachael Thompson negotiated the long-term lease on behalf of Cypress West Partners, a Southern California-based healthcare investment, leasing, and property management firm.
Kidder Mathews negotiated a 7-year lease (8,234 SF) worth $1.6 million for Oliver Street Dermatology Management.
“It has been exciting to see the property become so active this quarter; this lease is reflective of other recent activity we have seen in the area,” Thompson said. “Central Scottsdale is a market in high demand with its strategic location. It is attracting tenants and patients from Paradise Valley and North and South Scottsdale with its convenient access on Scottsdale Road and the Loop 101.”
NAI Horizon’s recent deals
The investment sale of an RV park in Mesa, Arizona, for $2.75 million highlights recent deals closed by NAI Horizon professionals.
Barbara Lloyd, Lane Neville, and Logan Crum negotiated the sale of an RV park, representing the seller, 2052 Main Properties, LLC, for $2.75 million. The property is located at 2052 W. Main St., Mesa, AZ. The buyer, Treehouse Communities, LLC, represented itself.
Laurel Lewis represented the tenant, Medicus IT, LLC, in a 77-month office lease for 7,303 SF at 2525 W. Frye Rd., Chandler, AZ. Mike Beale with Cushman & Wakefield represented the landlord, Frye Road Two, LLC.
Tyler Smith represented the landlord, Sun Grove Medical, LLC, in an 84-month office lease for 5,045 SF at 20470 N. Lake Pleasant Rd., Peoria, AZ. Randy Kicklighter with Green Street Commercial represented the tenant, T.E.A.M. 4 Kids, LLC.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, CP6MF, LLC, in an 87-month retail lease for 4,065 SF at 1840 E. Warner Rd., Tempe, AZ. Sean Bishop with Lee & Associates represented the tenant, Plato’s Closet.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the tenant, Top Laundry, LLC, in a 120-month retail lease for 3,000 SF at 3415 W. Glendale Ave., Glendale, AZ. Donna Reece with Zell Commercial Real Estate Services, Inc. represented the landlord, Pro’s Ranch Market, LLC.
Jay Olson represented the landlord, Gerald M. Olson and Diane M. Olson, in a 61-month industrial lease for 7,850 SF at 2210 & 2218 E. Adams St., Phoenix, AZ. Max Schumacher with Rein & Grossoehme represented the tenant, Short Equipment, Inc.
Tyler Smith represented the landlord, Pacifica Palm Valley Center, LP, in a 38-month office lease for 2,342 SF at 1626 North Litchfield Rd., Goodyear, AZ. Phil Tomlinson with Commercial Properties, Inc. represented the tenant, Libertas Real Estate, LLC.
Tyler Smith, Joe Pequeno and Troy Giammarco represented the tenant, Hynes Benefit Consulting, LLC, in a 66-month office lease for 1,584 SF at 3200 N. Central Ave., Phoenix, AZ. Jimmy Cornish with CBRE represented the landlord, ROC III, DPC 3200 North Central, LLC.
Chris Gerow and Patrick Anthon represented the landlord, The Pendola Family Trusts Partnership, in a 72-month retail lease for 1,300 SF at 41620 W. Maricopa-Casa Grande Highway, Maricopa, AZ. Tom Wolf with West USA Realty Scottsdale represented the tenant, Troy and Kathy Mauser.
Tom Bean, CCIM, represented the landlord, Tempe CC, LLC, in a 36-month office lease for 2,780 SF at 4515 S. McClintock, Tempe, AZ. Matt Cummings with Keyser represented the tenant, Caerus Marketing Group, LLC.
Chris Gerow, Shelby Tworek, Gabe Ortega and Patrick Anthon represented the landlord, CP6MF, LLC, in a 60-month retail lease with To the Nines Barbershop for 1,100 SF at 1840 W. Warner Rd., Tempe, AZ.
Tyler Smith represented the landlord, Arrowhead 79th, LLC, in a 60-month office lease for 1,276 SF at 18001 N. 70th Ave., Glendale, AZ. Kristi Phelps-Miller with DPR Commercial represented the tenant, Rise Above Support Services, LLC.
Matt Harper, CCIM, represented the landlord, Grand Center Plaza, LLC, in a 37-month retail lease for 1,107 SF at 11001 N. 99th Ave., Peoria, AZ. The tenant, Jewel’s Hair, LLC, represented themselves.
Dylan Whitwer and Laurel Lewis represented the tenant, Edefi Solutions, LLC, in a 37-month office lease for 840 SF at 3240 E. Union Hills Dr., Phoenix, AZ. Michael Scott with MAS-9375 represented the landlord, Union Hills Centre c/o MAS-9375.
Matt Harper, CCIM, represented the landlord, Hillcrest Plaza, LLC, in a 37-month retail lease for 2,100 SF at 1241 E. Broadway Rd., Mesa, AZ. The tenant, Touch of Love Church, UHCA, represented themselves.
Dylan Whitwer and Laurel Lewis represented the tenant, Waste Technology Services, Inc., in a 36-month office lease at 2266 S. Dobson Rd., Mesa, AZ. The landlord, Regus, represented itself.
Joan Krueger represented the tenant, Regenerative Performance, PLLC, in a 62-month medical office lease for 2,200 SF at 201 W. Guadalupe Rd., Gilbert, AZ. Steve Berghoff with Menlo Group represented the landlord, GilbertAZ Properties, LLC.
Matt Harper, CCIM, represented the landlord, Semo Venture Group, in a 13-month retail lease for 750 SF at 4170 N. 35th Ave., Phoenix, AZ. The tenant, Latino Money Services, represented themselves.
Dylan Whitwer and Laurel Lewis represented the tenant, David Aitchison, in a 12-month office lease for 450 SF at 21640 N. 19th Ave., Phoenix, AZ. The landlord, Garden Acres Partnership, LLC, represented themselves.
Matt, Harper, CCIM, represented the landlord, Hillcrest Plaza, LLC, in a 12-month retail lease for 420 SF at 1241 E. Broadway Rd., Mesa, AZ. The tenant, Jorge Velasco Garcia & Esperanza Maqueda Ramon, represented themselves.
Velocity Retail Group’s recent transactions
Velocity Retail Group recently completed dozens transactions totaling over 1.2 million square feet of retail, land and big boxes. The team leases and sells more big box transactions than any other local firm, with big box sales and leasing accounting for 40% percent of these transactions. Following are a few highlights of the new transactions:
La-Z-Boy Completes Investment Sale of Four Top-Ranked Arizona Stores
Darren Pitts of Velocity Retail Group and Bob Crum of Ross Brown Partners represented the Seller in a multi-property investment sale that included four individual La-Z-Boy Showrooms throughout Arizona. The Seller was Edward O. Breunig, III an independent dealer whose company EBCO, Inc. built the largest volume licensee stores within the entire La-Z-Boy network over a 35 year period. The buyer was VEREIT Acquisitions, LLC.
The buildings included in the sale were owned by entities controlled by EBCO, with leases in place to La-Z-Boy Incorporated. (NYSE: LZB)
• Chandler, Arizona – 3055 West Chandler Boulevard, Chandler, Arizona 85266. Parcel size of 2.27 acres with 23,815 SF building.
• Tucson, Arizona – 2040 West Ina Road, Tucson, Arizona 85704. Parcel size of 2.59 acres with 17,867 SF building.
• Goodyear, Arizona – 15320 West McDowell Road, Goodyear, Arizona 85338. Parcel size of 2.26 acres with 25,494 SF building.
• Prescott Valley, Arizona – 5584 East State Route 69, Prescott Valley, Arizona 86314. Parcel size of 1.6 acres with 14,295 SF building.
At Home Purchases Tempe Location
Darren Pitts, Executive Vice President, represented At Home (NYSE: HOME) in the purchase of 5.88 acres of land in The Groves shopping center located at the northwest corner of Elliot Road and Hardy Drive in Tempe, Arizona. The 88,000 square foot building will be constructed on the east end of the existing shopping center adjacent to Staples. It is expected to open in the later part of 2019. This will be the seventh Arizona location for At Home, which is based in Plano, Texas. Velocity Retail Group has worked with At Home on their store locations in the Phoenix area since 2007.
High Street Gains Four New Tenants
The Velocity team of Darren Pitts, Brian Gast and Dean Ingram represented the Landlord, High Street Buildings, LLC in four recent leases. Among the tenants are three restaurants including a new concept for a boozy breakfast and brunch and an alternative sports performance studio.
Following is a description of each retailer:
Hula’s Modern Tiki restaurant will soon be opening their third locally owned location in the Phoenix area. They will be occupying 3,860 square feet in the 5450 E. High Street building directly across the drive from Modern Margarita. For years Hula’s has been offering a modern twist on the classic tiki bars and restaurants of the 50’s and 60’s. The extensive menu is a fusion of Polynesian and American flavors and has something for everyone. Cushman & Wakefield’s Adam Madison represented the tenant in the transaction. www.hulasmoderntiki.com
Inchin Bamboo Garden, a sit-down Pan Asian cuisine concept will be occupying 3,000 square feet directly across the drive from Sprouts. The national restaurant with several locations throughout the U.S. offers “feel good” street food with the influence of flavors from the finest restaurants found within the big cities of China. They also serve Halal Food and offer an extensive menu. www.bamboo-gardens.com
Boozy Breakfast will occupy 4,000 square feet across the drive from Ocean Prime. The restaurant was created by an already successful local breakfast and lunch operator that has mainly focused on the business crowd. They will have a new spin on breakfast, brunch and lunch while complementing the meals with cocktails, mimosa’s and other offerings.
From Energy will open in 1,800 square feet and is a wellness, beauty and performance studio that delivers energy to the human body through an artificial intelligence guided technology. They focus on all natural alternatives to beauty as opposed to Botox and surgeries, helping their clients look beautiful and perform better from within. The concept was founded by former professional athletes with an impressive list of sports-oriented clientele. www.fromenergy.com
Lifetime Athletics to Open Peoria Location
Darren Pitts of Velocity Retail Group represented Lifetime Athletics in the purchase of a 3 acre land parcel at Happy Valley Road and 67th Avenue in Peoria, Arizona. The parcel is part of the Christ Church of the Valley development located on the southwest corner of the intersection. The land is located at the northwest corner of Hatfield and 67th Avenue. The Sellers were Christ’s Church of the Valley, Inc. and Terrazza Land, LLC.
Tempe Vacant Big Box to Become Central Christian Church
Brian Gast of Velocity Retail Group represented the Tenant, Central Christian Church in a 17,200 square foot lease in Royal Palms Plaza located at the southeast corner of Elliot Road and McClintock Road in Tempe, Arizona. The Landlord was Michael Pollack of Pollack Investments, Mesa, Arizona. The church signed a ten-year lease in the shopping center and is expected to open in August of 2019. This will be their sixth location in the Valley.
Lure Fish House Enters Arizona Market
Southern California-based Lure Fish House is expanding to the State of Arizona. Velocity Retail Group’s Darren Pitts, Morgan Danhoff and Bret Olson are representing the tenant in the market launch. The team has recently finalized the first store at The Shops at Gainey Village, located at the southeast corner of Doubletree Ranch Road and Scottsdale Road. This will be the fifth location for the popular restaurant. The new 6,336 square foot restaurant will be in Suite 402 situated at the main entrance to the center and fronting Scottsdale Road. The opening is scheduled for the Fall of 2019.
Kay Jewelers to Open in Avondale
Velocity Retail’s Dave Cheatham and Morgan Danhoff represented the tenant, Sterling Jewelers Inc, the parent company of Kay Jewelers on a 1,504 square foot lease at Gateway Pavilions shopping center located at the northwest corner of McDowell Road and 99th Avenue. Western Retail Advisors represented the Landlord, RPAI Southwest in the trandsaction.
Scottsdale Big Box to Become Kitchen United
Darren Pitts, Brian Gast and Brad Ranly of Velocity Retail Group represented the Landlord, C & H Development Company in 14,412 square foot lease at Scottsdale Commons shopping center located at the southwest corner of Shea Boulevard and Scottsdale Road. Kitchen United, Inc. will be occupying the vacant space adjacent to BevMo. The tenant was represented by Todd Folger and Jami Gray from CBRE.
Sharetea Bubble Tea Shop to Open 1st Arizona Location
Brian Gast and Brad Ranly represented the Landlord, Ethan Christopher, LLC in negotiating a 1,080 square foot lease to Sharetea Bubble Tea Shop. This is the first location in Arizona for the international concept which can be found in 18 countries and 9 states throughout the U.S. www.1992sharetea.com
My Salon Suite Expands in Gilbert
Dave Cheatham and Bret Olson represented My Salon Suite in a 5,972 square foot location at the southeast corner of Germann and Gilbert Roads in Gilbert, AZ in the Crossroads Towne Center. The shop is expected to open in April 2019. The Landlord was Mark IV Capital was represented by Western Retail Advisors.
d’Lite Healthy On The Go Expands to Tempe and Phoenix
Brian Gast represented the Landlord, Ethan Christopher, LLC in negotiating a lease to d’Lite Healthy On The Go for 2,000 square feet at the southeast corner of Southern and Mill Avenue. The location is expected to open in June of this year.
A second location was negotiated at the northwest corner of Missouri and 7th Avenue for 3,620 square feet. The Landlord, F & S Management II, LLC was represented by Brian Gast. The new restaurant is expected to open in April of this year.
Ashley HomeStore to Open in Gilbert
Ashley HomeStore has closed escrow on 3.2 acres land at the southwest corner of Williams Field Road and San Tan Village Parkway in Gilbert, Arizona. Ashley will construct a new prototypical HomeStore of approximately 38,000 square feet on the parcel. This will be the 14th Ashley HomeStore in Arizona. Darren Pitts of Velocity Retail Group and Aaron Hodgdon of Hodgdon Group Realty represented the buyer in the transaction. The Seller was San Tan AZ, LLC, an entity controlled by Intercapital Development based in Las Vegas, Nevada. Capital Asset Management represented the Seller.
Valvoline Instant Oil Change Finalizes Gilbert Store
Dave Cheatham, Darren Pitts, and Brian Harpel represented Valvoline Instant Oil Change on a ground lease of approximately 34,850 square feet of land at the northeast corner of Pecos and Val Vista Roads in Gilbert. VOIC will build their 2,100 square foot prototype building. Brian Gast, also of Velocity Retail represented the Landlord, WNDG, LLC in the transaction.