Newmark sells The Block at Pima Center in Scottsdale for $23.5M
Newmark announced the sale of The Block at Pima Center, a 37,958-square-foot, multi-tenant retail center located in Scottsdale, Arizona. The asset sold for $23.5 million, one of the highest sale prices for a newly constructed, unanchored strip center in Metro Phoenix history.
Newmark Senior Managing Directors Jesse Goldsmith and Steve Julius and Director Chase Dorsett represented both the seller, Block East, LLC & Block West, LLC, and the buyer, New Block 22, LLC. The property was 100% leased at the time of sale. Newmark’s extensive marketing process helped secure the repeat buyer and drove the sale of the property with leasehold interest, a rarity in Arizona.
“It’s been exciting to watch The Block at Pima Center come to fruition after many years in the making,” said Dorsett. “Adjacent to one of the highest income zip codes in Arizona, the property offers a diverse tenant mix of restaurants, beauty services and health/fitness. This is a fantastic legacy asset for the buyer in one of the most premier entertainment corridors in all of Arizona, and an excellent result for the seller who executed on their development plan.”
Located at the Northwest corner of Via De Ventura and the 101, The Block at Pima Center is a newly constructed, Class A+ retail center that features a mix of national and regional, high caliber tenants including Starbucks, Dickey’s Barbecue Pit, Mayweather Boxing + Fitness, Spinato’s and more. The asset features several full-service restaurants with patios, fast-casual dining options, health & fitness tenants and personal care services that cater to the nearby demographic.
“This was a complicated transaction for various reasons, not the least of which was the broader economic shift that occurred over the course of the deal that made a lot of other transactions fall out. The added complexity of a land lease, the idiosyncrasies of transferring title within the Salt River Pima Indian Community and a tight timeline required a certain finesse and perseverance,” said Curtis Brown, Principal MainSpring Capital Group. “The Newmark and Ross Brown brokerage teams and the debt financing professionals at Tauro Capital and Enterprise Bank did a great job.”
Pima Center is located in the heart of Central Scottsdale’s premier entertainment and employment corridor, adjacent to the highly trafficked Loop 101 Freeway. The property is proximate to numerous entertainment venues including Salt River Fields, Top Golf, Medieval Times, Great Wolf Lodge, Odysea Aquarium and more. Over one million square feet of mixed-use developments are proposed within a one-mile radius.
According to Newmark Research, retail was the only sector to increase investment sales year-over-year. Investment sales across all property sectors declined 23% year-over-year and 27% quarter-over-quarter in the third quarter of 2022. Even so, it was the second best third quarter on record.