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6/07/23
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Concepts Inc purchased Ahwatukee Mercado, a 54k sf retail center in Phoenix. Located at 4747 East Elliot Rd, the 95% leased center is shadow-anchored by a Safeway Grocery Store. The price was not disclosed.
The property includes a Safeway Grocery Store and 21 tenants, two of which are freestanding restaurants. Ahwatukee Mercado is just one mile west of the I-10 Freeway and adjacent to residential neighborhoods, Walgreens, O’Reilly Auto Parts and Chase Bank.
The center is situated at the lighted intersection of Elliot Rd and 48th St, just minutes from a major employment district, exposing the property to nearly 60,000 vehicles daily. Situated in a high-demographic neighborhood, the property is proximate to major freeways, the airport and quick access to all parts of the Phoenix MSA.
Steve Julius, Jesse Goldsmith and Chase Dorsett with Newmark represented the seller, Westwood Financial.
“This is a fantastic, stable income-producing shopping center with the neighborhood grocery store draw that investors are looking for,” said Julius. “The retail market in Phoenix is very healthy. The asset traded at a 6.75% cap rate, a trend we continue to see among grocery center assets as investors desire to invest at a higher cap rate than the cost of borrowing. This deal also obtained favorable new financing at a great rate.”
Despite a slowing U.S. economy, 2023 forecasts in the Phoenix retail market are overwhelmingly positive with every major statistical category performing stronger than the market has seen in the last two decades. Sales transaction volume in the first quarter of 2023 totaled $369 mil, with the rolling four quarters volume remaining over $2 bil. Retail leasing remained strong, with the vacancy rate dropping for another consecutive quarter, sitting at 5% throughout the Metro. Investor and user optimism in the Phoenix market remains high due to consistently experiencing the highest population growth of any metro area, along with a steadily decreasing vacancy rate, according to Newmark Research.
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