Big deals from NAI, C&W, 29th Street Capital
NAI Horizon represents landlord in $2.9M lease
NAI Horizon negotiated a long-term lease on behalf of the landlord for tire sales and service retailer Tire Works at Queen Creek Fiesta in Queen Creek, Arizona.
The NAI Horizon retail properties team of Senior Vice Presidents Chris Gerow, Shelby Tworek, Gabe Ortega, and Associate Patrick Anthon represented the landlord, Queen Creek Fiesta, LLC of Scottsdale, Arizona, in the transaction totaling $2.9 million.
“This was a great company to work with,” Gerow said. “This location is between AAMCO and Brake Masters and should be a top-performing store for many years.”
Tire Works will occupy a 5,400 SF pad at Queen Creek Fiesta, 21545 S. Ellsworth Loop Rd., in Queen Creek. Queen Creek Fiesta is anchored by a Planet Fitness. Other tenants scheduled to open include Five Guys, Hand and Stone, and ATI Physical Therapy.
The tenant, GB Auto Services, Inc., of Tucson, Arizona, was represented by Courtney Auther and Cameron Warren of Phoenix Commercial Advisors.
Cushman & Wakefield will lease 3300 N. Central Ave.
Arizona State Retirement System (AZRS), which has provided retirement security to Arizona’s public servants for more than 50 years, has awarded Greg Mayer, Keith Lambeth, Jerry Noble and Patrick Schrimsher of Cushman & Wakefield the leasing assignment for 3300 N. Central Avenue in Phoenix.
“We are very excited to enter into the relationship with AZRS and look forward to handling the office leasing for them,” said Mayer.
3300 N. Central Avenue is a 363,655-square-foot (sf) office building situated within the Midtown submarket. Built in 1980, the property recently underwent major exterior renovations including new common areas and covered seating for the tenants. The 26-story building features a fitness center, new café, business lounge, an onsite restaurant and espresso bar, professional onsite property management, major signage opportunities, and views of Camelback Mountain, Downtown, Midtown, Piestewa Peak and Tempe.
“The recent and planned renovations will help drive leasing activity,” added Mayer.
The Midtown submarket, with about 13 million sf, has one of the biggest office inventories in Phoenix. Several of Metro Phoenix’s biggest trades in 2018 have been here, including one for Midtown’s most iconic buildings. The submarket has been fairly liquid in the past couple of years, and plenty of investors are coming from outside of Arizona.
29th Street Capital expands Phoenix area portfolio
29th Street Capital (29SC), a privately-held real estate operator, has acquired Argenta Apartments, a 396-unit multifamily community located in Mesa, Arizona. 29SC plans to invest over $3.2 million in capital improvements. Interiors will receive updated flooring, new black appliances and upgraded fixtures as well as plumbing and lighting packages. Cabinets will also be re-faced. Exterior improvements will focus on landscaping, A/C units and roof repairs. The new owner will add a dog park and playground and upgrade the pool area.
“The property is conveniently located north of Hwy. 60, which provides easy access to downtown Mesa as well as Tempe, Chandler and Phoenix,” said Dusty Eddy, 29SC’s Senior Vice President of Acquisitions in the Southwest. “We are acquiring this asset at the right price in a highly desirable submarket, so overall it’s a great addition to our portfolio.”
The Phoenix metro market ranks third in the nation for rental growth, which is increasing by 6.2% year-over-year, according to CBRE Research. It is expected to finish 2018 with a 5.6% annual increase, which would move it up a notch to second place. Healthy macroeconomic factors are spurring the local economy. It continues to diversify through the expansion of the technology and healthcare industries as California companies and renters nationwide relocate to the Valley seeking jobs and affordability.
“The demographics for the Phoenix area are moving in the right direction,” Eddy added. “The market is experiencing profound increases in population and job growth, so we will execute our business improvement plan and offer a higher quality, yet still affordable housing option in a fast-moving market.”
Argenta is located in the geographic center of the East Valley, an ideal location for dual-income households commuting to different employment hubs. Proximity to Hwy. 60 connects residents to three of metropolitan Phoenix’s largest hospitals, which combined account for 8,100 jobs.
The transaction closed November 15. The sale price and seller were not disclosed.
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