Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that Executive Vice President Bill Asher and Vice President Jeff Lefko have arranged the sale of a multi-tenant, pad building shadow-anchored by the 1.2-million-square-foot Arrowhead Towne Center Mall in Glendale, Ariz. The 8,433-square-foot pad building is leased to The Habit Burger Grill, Tempur-Pedic, Pearle Vision, and Blaze Pizza. The sale price was $7.6 million, representing more than $901 per square foot.
Asher and Lefko represented the seller, ECC Bell Road Property LLC based in Indianapolis. The buyer, a family trust based in Orange County, Calif., was represented by Pat Kent and Parker Walter of SRS Real Estate Partners in Newport Beach, Calif.
The four-tenant building is located on 1.37 acres at 7870 W. Bell Road in Glendale at the signalized intersection of Bell Road and 79th Avenue with 50,000+ cars per day. The 100-percent occupied property, which was built in 2017, is located 1/2 mile from the Loop 101 freeway (116,000 cpd), a 62-mile beltway connecting the east and west cities of Greater Phoenix.
“The buyer acquired a pride of ownership investment at arguably one of the highest traffic signalized intersections in Glendale, Arizona,” said Asher. “The pad building is shadow-anchored by the highest volume regional mall in Arizona, which is a tremendous benefit to the property. There are over 1.57 million people in the trade area and 10.8 million visitors each year that visit Arrowhead Towne Center Mall; that is twice as many that visit the Grand Canyon.”
Mall anchors include AMC Theatres, Dick’s Sporting Goods, Dillard’s, Forever 21, JCPenney, Macy’s, and Sears. Other nearby prominent national tenants include Walmart Supercenter, Target, Costco, T.J.Maxx, Trader Joe’s, Ross, ULTA Beauty, Chick-fil-A, In-N-Out Burger, and Starbucks.
Lefko adds that the four-tenant pad building is located on a major east/west Phoenix corridor and features four brand-new, long-term leases with strong fixed increases (10 percent or 12 percent) every five years, which made this investment very attractive.
Asher notes that the property also benefits from the dense, affluent demographics in the area. The average household income in a three-mile radius of the property is $84,000 and there are over 296,000 people within a five-mile radius. The property is just four miles from one of the region’s most wealthy and sought-after neighborhoods, Arrowhead Ranch.
Glendale is in the northwestern part of the Phoenix MSA and is the sixth largest city in Arizona. The city also was ranked #1 “Emerging Travel Destination” by Trivago (2017); #5 “Best Midsize Sports City” by WalletHub (2018); and #1 “Most Diverse Suburb in Arizona” by Niche (2018).
The city of Glendale is an entertainment destination with 13 hotels with another three additional hotels planned or under construction and Westgate Entertainment District, a 23-acre, $1 billion sports and entertainment district anchored by Gila River Arena, home of NHL’s Arizona Coyotes. Adjacent is the State Farm Stadium (formerly University of Phoenix Stadium), the home field of the Arizona Cardinals in the National Football League since 2006, and the annual Fiesta Bowl college football game since 2007. The stadium will host the 2023 Super Bowl and 2024 NCAA Final Four; $100 million in upgrades planned from 2018-2023.
“As the retail investment market transitions forward into the second half of this year, trophy properties like this one in Glendale, Arizona, demonstrate that investors will continue to transact at premium pricing for properties with excellent real estate fundamentals in ‘A’ locations in major markets across the country,” Asher said.