HFF announces $24.5M sale and $17.8M financing of grocery-anchored shopping center in Tucson
PHOENIX, AZ – November 8, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $24.5 million sale of and the $17.8 million acquisition financing for Colonia Verde, a 98,937-square-foot, grocery- and pharmacy-anchored neighborhood shopping center in Tucson, Arizona.
The HFF team marketed the property on behalf of the seller, Westwood Financial Corporation, and represented the buyer, ROK Properties, Inc. Additionally, the HFF team placed the 10-year, fixed-rate loan with a global financial services firm. HFF will service the loan.
Currently 99 percent leased, Colonia Verde is home to anchors Safeway and Walgreens in addition to Ace Hardware, Wells Fargo, Panda Express, Coldstone Creamery, Jamba Juice and more. The center, which was completed in 1974 and renovated in 1993, comprises three multi-tenant buildings and one outparcel pad. Situated on 8.6 acres at 7111-7189 East Tanque Verde Road in northeastern Tucson, Colonia Verde is located on the northeast corner of Sabino Canyon Road and Tanque Verde Road, which have combined traffic counts of more than 95,000 vehicles per day. The center is adjacent to the upscale Catalina Foothills community, and more than 84,000 residents earning an average annual household income of $64,436 live within three-miles of the center.
The HFF retail investment advisory was led by managing director Gleb Lvovich, who represented the seller. Senior director Nick Kassab worked with the buyer, who was in a 1031 exchange from another HFF-brokered property, Fourth Plain Shopping Center, in Washington earlier this year.
The HFF debt placement team representing the new owner included senior managing director Jeremy Womack.
“The sale of Colonia Verde Shopping Center represents HFF’s second significant grocery-anchored retail trade in Tucson in the past four months, and the pricing achieved underscores investor demand for grocery/drug-anchored retail,” Lvovich said. “Arizona has seen significant inflows of capital from key West Coast markets, and HFF’s collaborative platform has been a significant driver of this capital into Arizona.”
“We are thrilled to have facilitated a successful 1031 exchange into a strategic asset for one of our great clients,” Kassab added. “HFF’s debt team, led by Jeremy Womack, was instrumental in driving yield and ensuring the capital stack met our client’s needs.”
HFF, acting by and through Holliday GP Corp., is a commercial mortgage broker licensed with the Arizona Department of Financial Institutions, License Number CMB 0938500 and NMLS Number 1524298.
About Westwood Financial Corp.
For over 40 years, investors have turned to Westwood Financial Corp. for proven returns on strategic real estate investments. Under the direction of founders Howard S. Banchik and Steven J. Fogel and, now, Joe Dykstra as its CEO, the company has successfully acquired and sold hundreds of income-producing properties, generating substantial profits for its partners. In the process, Westwood Financial Corp. has earned a reputation and longevity that is unparalleled in the shopping center world.
Westwood Financial Corp. continues this tradition today with a staff of over 71 retail experts directing a portfolio of over 120 shopping centers in 26 metropolitan markets, with four other retail assets in Houston. Westwood Financial Corp. is fully integrated in asset management, property management, leasing and acquisition efforts from its Los Angeles headquarters and regional offices in Dallas, Atlanta and Scottsdale, Arizona.
HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.