CANADIAN INVESTOR BUYS SECOND VALLEY RETAIL PLAZA WITH $30.8 MILLION DEAL IN CHANDLER
Publish Date: 06-14-2019
Photo Credit: www.kitchell.com
CHANDLER – It took almost five years to return to the Valley market, but investor Kulwant Singh Sarai of Delta, B.C., Canada has paid $30.8 million ($246.75 per foot) to buy a 124,822-square-foot neighborhood shopping center at the northwest corner of Gilbert and Chandler Heights roads in Chandler. Boardman Chandler LLC in Ketchum, Id. (John Boardman Baker, manager) was the seller. Jan Fincham and Andrew Lundahl of Lee & Associates Arizona in Phoenix represented the seller in the deal along with Shane Jimenez of Lee & Associates in Boise, Id. Nathan Cardon of Cardon Commercial in Surprise represented the buyer. The 18.08-acre property, called Chandler Heights Marketplace, is 98 percent occupied. The five-building shopping center, anchored by Bashas’ Grocery and Ace Hardware, has addresses of 4940, 4970, 4850 and 4870 S. Gilbert Road. Maricopa County records show Sita Enterprises LLLP (Sarai’s limited partnership) acquired the asset with a $5 million down payment and $25.8 million in seller carryback financing. In September 2016, BREW reported Baker’s company paying $30 million ($240.34 per foot) to purchase the retail center, which was developed by Kitchell Corp. of Phoenix in 2005. “It’s a terrific location in a high demographic area,” says Fincham. “It’s in a real affluent area with household incomes within a one mile radius averaging more than $152,000.” Other tenants in the center include: Starbucks, Orange Theory, Pizza Hut, Leslie’s Pool Supplies, UPS, H&R Block and Edward Jones. With a tenant roster paying rent that is roughly 25 percent below market rates in the area, Fincham says there is upside potential for the new owner. Bryan Ledbetter of Western Retail Advisors in Phoenix has been hired to lease Chandler Heights Marketplace. Zell Commercial Real Estate Services Inc. in Phoenix is managing the project. The purchase is the second in the Valley for Sarai. In August 2014, BREW reported the private investor from Canada paying $11.7 million ($150.88 per foot) to acquire a 77,545-square-foot retail center also anchored by Bashas’ grocery within the Marley Park community at the southeast corner of Waddell and Reems roads in Surprise. That property, called Marley Park Plaza, is in the process of being expanded by 16,200 sq. ft. In his first Valley acquisition in June 2012, BREW reported Sarai paying $2.35 million ($177.21 per foot) to buy a 13,261-square-foot retail center at 1914 S. Power Road in Mesa. Nathan Cardon, who represents Sarai in his Valley investments, says the Canadian businessman owns 27 properties across the country and is looking to add to his three assets in the Phoenix market and will look at deals up to $50 million. Find out more from Nathan Cardon at (602) 334-8546. Talk to Fincham and Lundahl at (602) 956-7777. Contact Jimenez at (208) 343-2300.
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