MCA Realty, a full-service real estate investment and management company based in Orange County, California, has achieved its first retail acquisition in Arizona with the purchase of the 35,000+ square-foot Hillside Sedona Shopping Center in Sedona, Arizona. The retail property was purchased in an off-market transaction through an existing broker relationship.
This $12.45 million transaction also represents MCA Realty’s first acquisition in the Sedona submarket, according to Tyler Mattox, Principal at MCA Realty.
“We were interested in the asset based on solid retail fundamentals and the lack of available competing space in the Sedona submarket,” says Mattox.
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Built in 1989 and 1997, Hillside Sedona Shopping Center was 89% occupied at purchase. MCA Realty is looking to lease up the remaining space with the expertise of leasing broker Jack McMahon of McMahon & Miller Commercial Real Estate.
Additionally, the firm plans to implement improvements such as updating the paint, signage, and asphalt at the property.
“As part of our value-add approach, we will increase the aesthetic appeal of this asset to drive foot traffic and retail sales,” shares Mattox. “We want to ensure we maximize the number of consumers at the retail center to support our tenants and encourage their growth. Signing synergistic tenants and elevating the property’s appearance are ways to achieve this.”
The Hillside Sedona Shopping Center contains multiple recognizable companies within the fashion, art, dining, and service industries including The Hudson, Javelina Cantina, Berkshire Hathaway, and Mooney’s Irish Pub & Burger Bar.
The acquisition was completed outside of MCA Realty’s $50 million industrial growth fund; although, the firm is still actively deploying equity from the fund for other transactions. According to Mattox, the firm also intends to raise another fund for future acquisitions.
Tracy Cartledge, Bob Buckley, Shane Carter, and Chris Hollenbeck of Cushman and Wakefield represented the buyer in the transaction.
Hillside Sedona Shopping Center is located at 671 AZ-179, Sedona, AZ.
