Newmark announced that it has completed the sale of Village at Augusta Ranch, a 25,714-square-foot, grocery-shadow-anchored retail center in Mesa, Arizona for $9.7 million. Newmark Senior Managing Directors Jesse Goldsmith and Steve Julius and Associate Director Chase Dorsett represented both the seller, Village Augusta SPE, LLC, and the buyer, Alan Development, LLC.
The buyer, Alan Development LLC, is a Tampa, Florida-based developer that has historically focused on residential and commercial projects in the Tampa area. This purchase is Alan Development’s first investment outside of the Tampa area. The buyer’s interest in this deal speaks to the robust demand for Arizona retail, as this asset was selected over opportunities in strong retail markets such as Atlanta, Nashville, Houston, Austin and Dallas. Alan Development was extremely pleased with the smooth execution of the transaction conducted by the Newmark team.
“Grocery-shadow-anchored transactions in Arizona remain in exceptionally high demand,” said Goldsmith. “After multiple offers on this transaction, we were able to work with a great exchange buyer. Both the seller and the buyer executed the deal in world-class fashion. We felt honored to work with both sides.”
The Newmark team has a strong, long-standing relationship with the seller. Village Augusta SPE is a Newport Beach, California-based investor which originally purchased Village at Augusta Ranch in 2016, working with Julius, Goldsmith and Dorsett on the transaction. As the center grew stronger over the years among favorable market fundamentals, the team took the asset back to market at an aggressive pricing structure. The seller was also pleased with the strong execution of the transaction carried out by the Newmark team.
The Village at Augusta Ranch is a 96%-occupied, 16-tenant retail center located at 9221 & 9303 East Baseline Road in Mesa, Arizona. The property is shadow anchored by an Albertson’s grocery store, the strongest grocer in a 3-mile radius. Located just 0.1 miles south of the I-60 freeway, the retail center benefits from a direct exit on Ellsworth Road and experiences high daily traffic in the parking lot. The property, built in 2001, measures 25,714 square feet and sits on just over 3 acres of land. Major national tenants at the property include Subway, Simply Tan, American Family Insurance, The UPS Store, Supercuts and Mathnasium.
The second largest city in the Greater Phoenix Metro, Mesa has over 500,000 full-time residents consisting mostly of suburban families. The submarket boasts high-tech and advanced manufacturing employers including Boeing, FUJIFILM and Mitel. Recently, two Fortune 500 tech companies announced plans to construct multi-billion-dollar data and technology centers in the submarket, and WageWorks announced that it will be relocating 1,000 employees to the area. Mesa benefits from its proximity to Arizona State University and the rapid corporate migration and expansion in Tempe and Gilbert. Mesa has ready access to some of the best outdoor and nature attractions in the state, including the Superstition Mountains, Salt Lake River and Theodore Roosevelt Lake.