A prominent north Scottsdale retail center has new ownership as a result of a $16 million sale that closed last week. Scottsdale North Marketplace, a 68,522-square-foot retail center located at Scottsdale Road and Lone Mountain Road, was purchased by a joint venture between Holualoa Companies and Epic Real Estate Partners in a $16 million transaction.
Strategically located with frontage on Scottsdale Road, Scottsdale North Marketplace is approximately 75 percent occupied and anchored by a high-performing AJ’s Fine Foods and a variety of local and national retail, medical and service tenants. The center was built in 2007-2008 on 11.35 acres and serves North Scottsdale and Carefree/Cave Creek, among Scottsdale’s most affluent neighborhoods, with an average household income exceeding $150,000 within a three-mile radius.
Stan Shafer, Chief Operating Officer of Holualoa Companies, said the property was an ideal opportunity for the new owners because of its currently strong group of tenants combined with the opportunity to add new leases to the mix.
“This is a tremendous project in an ideal location with a strong anchor tenant in AJ’s Fine Foods,” Shafer said. “When you look at the demographics along with the opportunity to grow the tenant base and make it even more dynamic, it was a very inviting transaction. We were pleased to be able to work with Epic Real Estate Partners to make this happen.”
Newmark Knight Frank’s Capital Markets group represented the Irvine, California-based seller Value Rock Investment Partners in the sale to Epic Real Estate Partners, LLC and Holualoa Companies. NKF Executive Managing Director CJ Osbrink represented the seller alongside Vice Chairman Pete Bethea and Senior Managing Directors Rob Ippolito and Glenn Rudy.
“Scottsdale North Marketplace presents new ownership with an immediate value-add opportunity with in-place rents well below market value and shopping center occupancy at 74.6 percent,” Osbrink said. “The asset will allow ownership to capitalize on affluent surrounding demographics, Scottsdale Road frontage and a strong-performing grocery anchor, the only high-end supermarket serving the The Boulders, Carefree, and Desert Mountain communities.”