TUCSON, AZ - Paloma Village Center, located at one of the most desirable intersections in the State, Campbell Ave & Skyline Drive in Tucson, sold for $17.2 million ($456 PSF). The 37,739-square-foot center on 4.49 acres sold to HRA Paloma LP, a commercial real estate entity affiliated with Hannay Realty Advisors based in Phoenix plans to manage the property itself.
Paloma Village Center is a well-positioned Class A property located in the prestigious Catalina Foothills and is part of a 12.9 acre mixed-use development that also includes a 120 room flagship Embassy Suites Hotel, which was not included in this sale.
Paloma Village Center with 14 tenants has a history of high occupancy due to its tremendous visibility and signage, limited retail competition and high income demographics in the surrounding area. 71% of the rent roll are original tenants of the center that was developed in 2004.
The heavy draw to the intersection is the 250,000-square-foot La Encantada outdoor specialty mall featuring luxury retailers and restaurants such as: The Apple Store, Tommy Bahama, AJ’s Fine Foods, Lululemon Athletica, Coach, Tiffany & Co, Williams-Sonoma, Pottery Barn, Louis Vuitton and more.
The national tenants occupying Paloma Village Center include Fleming’s, CVS Pharmacy, Starbucks and Verizon Wireless. Other tenants include Café Jasper, C. Green Jewelry, Spa NiVa and The Ballet Conservatory of Dance Music & Art.
The buyer in the transaction was represented by Andrew Harrison of ORION Investment Real Estate of Scottsdale. The California-based seller, Darryl Wong & Associates, was represented by Matthew Lyons of The Hogan Group in Scottsdale.
ORION’s Vice President Andrew Harrison noted, “This high profile property represents a generational opportunity in a submarket where properties rarely trade. The buyer was drawn to the stable tenant roster and high barriers to entry.”
To learn more Harrison should be reached at 480.634.6934 and Lyons can be contacted at 602.553.4158.
[mepr-show rules="58038"]Sale Date: 1/22/2015. Buyer paid $8.6 million down and financed the balance with Nationwide Life Insurance Company. Parking ratio 5:1000. Property was 97% occupied at time of sale and sold at a 6.14% cap rate.[/mepr-show]