Scottsdale shopping center sells for $180M in the highest retail sale so far this year

Scottsdale shopping center sells for $180M in the highest retail sale so far this year

Article Originally Posted By PhoenixBusinessJournal On August 10, 2022

Phoenix’s retail centers are in high demand from investors and are going at near-record prices.

During the first week of August, two separate shopping centers in the Valley sold at some of the highest prices shopping centers have gone for this year.

On Aug. 2, a limited liability company formed in Delaware acquired Scottsdale Promenade, a 581,611-square-foot power center on the southeast corner of Scottsdale Road and Frank Lloyd Wright Boulevard, for $180 million. According to real estate database Vizzda, that is the largest retail property in the Valley to be sold in 2022 and it attracted the highest price.

The center was built in 2005 and covers more than 61 acres.

The Scottsdale Promenade is home to a number of large and well-known retail tenants including Lowes, Living Spaces, Nordstrom Rack, Michaels, Trader Joe’s and Old Navy. Several popular restaurants are located there too, including The Capital Grill, Maggiano’s, Benihana, Cooper’s Hawk, Buffalo Wild Wings and In-N-Out.

Because the buyer is based out of Delaware, a state that doesn’t make information on companies public, very little is known about the buyer through public records. The seller of the property was Excel Owner Promenade LLC, which was connected to ShopCore Properties, a Chicago-based real estate company that is a Blackstone portfolio company, according to Maricopa County records.

Lake Pleasant Pavilion trades

On Aug. 3, another large shopping center in the Valley traded hands. Lake Pleasant Pavilion, which is located at 9947 Happy Valley Road in Peoria, sold for $50.5 million, according to Vizzda. The Lake Pleasant Pavilion transaction, so far, is the fourth highest-priced shopping center deal in the Valley in 2022.

The center was acquired by Big V Property Group, a Florida, New York-based real estate investment and property management firm that is growing its retail portfolio across the country. The seller was also ShopCore.

Lake Pleasant Pavilion is home to highly-trafficked tenants such as BevMo, Marshall’s and AnyTime Fitness. It is also shadow-anchored by a SuperTarget, which was not part of the transaction.