In a sign that high-quality properties are in demand, Scottsdale Place LLC, a real estate developer, has sold The Shops at Zócalló, a 26,595 sq. ft. center for $16.75 million. Emerson Properties Inc., a California-based investor, was the buyer for the property located in Scottsdale, Ariz.
The sales price of $629.82 per sq. ft. represents the highest price per sq. ft. ever paid for a multi-tenant retail property in excess of 10,000 sq. ft. in Arizona, according to Sperry Van Ness. “This sale confirms that Class-A properties in Class-A locations can still achieve record prices with a good marketing strategy,” says Ari Spiro, a vice president with Sperry Van Ness, which represented the seller in the transaction. “This is only the seventh retail deal over $15 million to close in Arizona in 2008.”
Spiro describes the location as “the most premier location in the entire state.” For one, the property is located in North Scottsdale, an affluent Arizona suburb, across the street from Kierland Commons, a mixed-use development and retail center.
The property also is near the Scottsdale Quarter, a 1.3 million sq. ft. mixed-use project that is under development. The first phase of the Scottsdale Quarter project, which will bring 300,000 sq. ft. to market, is opening in March 2009, according to Spiro. Retail tenants signed on for the first phase include Williams Sonoma, the home furnishings store, and an Apple store. The project will also incorporate office space and possibly a hotel.
The Shops at Zócalló is 90% leased, and the list of tenants includes Chipotle, Omaha Steaks, Electric Couture and Hamra Jewelers.