Newmark Knight Frank (“Newmark”) announced that it has completed the sale of three retail assets at Gilbert Crossroads in Phoenix, Arizona. The properties traded for a combined total of $13.9 million to three separate investors.
Located at the busy intersection of Gilbert Road and Warner Road, Gilbert Crossroads is ideally situated in a densely populated, high growth submarket with excellent household formation and incomes. The assets sold were Shops E, Shops B, and Planet Fitness, all newly constructed, Class A properties delivered in 2020. The seller and developer was Remington Nevada.
“Along with reopenings following pandemic shutdowns, there has been increased demand for newly constructed retail centers that provide stable, long-term cash flow”, said Dorsett. “Gilbert Crossroads is a top destination for name brand retailers due to surrounding residential growth and affluent demographics. We’re excited to watch the remaining phases of this Class A development come to fruition.”
Shops E, located at 85 E Warner Road, was acquired by a private Scottsdale-based investor for approximately $2.6 million or $646 per square foot. The multi-tenant property is 3,983 square feet and is leased to BMO Harris Bank and Jeremiah’s Italian Ice, both for ten-year lease terms.
Located at SEC Gilbert Road and Warner Road, Planet Fitness was acquired by a Seattle-based 1031 exchange buyer for $6.1 million. The property comprises 29,111 square feet and is under an eleven-year lease to the largest franchisee in the Planet Fitness system.
Shops B, located at 835 S Gilbert Road, was acquired by a private investor based out of California for approximately $5.3 million. The multi-tenant property measures 10,000 square feet and is fully leased to four tenants – Pacific Dental Services, Tap Dragon, El Taco Santo and Jersey Mike’s.
Julius, Goldsmith and Dorsett continue to be active, completing 19 transactions year-to-date with five properties under contract, further confirming Metro Phoenix’s strong market fundamentals, the recovery of the retail sector and the expectation of continued growth for the market.