Whitestone REIT (NYSE: WSR
) has acquired the Shops at Pecos Ranch, located at 1850 - 1920 W. Germann Rd. in Chandler, AZ from an investment group including Nautica Development for $18.95 million, or about $241 per square foot.
Whitestone, a fully-integrated real estate investment trust that owns, operates and redevelops community-centered properties, now owns more than 1.2 million square feet across 15 centers in the greater Phoenix area, including its recent acquisition of two retail centers in AZ for $65.9M
The 78,767-square-foot Shops at Pecos Ranch, a seven-building center delivered in 2009 on 10.1 acres, was 100 percent leased at the time of sale to a number of retailers, service providers and restaurants at a high-traffic intersection with Dobson Road. Southwestern-style architecture surrounds several shaded gathering spots and fountains, contributing to the neighborhood feel of the densely populated trade area near Intel's new 682-acre corporate campus.
The center has in-place cash flow of approximately $1.6 million, or 8.4% of the purchase price, according to the buyers. The transaction was a short sale for the seller, which reported a balance of $15 million on its existing development loan.
Whitestone's in-house management and leasing teams will handle the property, benefiting from the economy of scale drawn from its other nearby assets. Though Pecos Ranch was in Whitestone's pipeline for more than a year, its in-house team enabled closing in less than 30 days of due diligence. No third-party brokers were reported in the direct sale.
Please see CoStar COMPS #2629519 for additional information on this transaction.