Lucescu Closes Phase Two of $166M Scottsdale Promenade Sale
- Jan 25, 2012
January 25, 2012
By Nicholas Ziegler, News Editor
In a $66 million deal that completes the second phase of the Scottsdale Promenade sale, Lucescu Realty has sold the Promenade Corporate Center to Excel Trust, a publicly traded REIT. In July of last year, the San Diego-based Excel Trust purchased The Promenade, a 730,000 square-foot shopping center in Scottsdale, Ariz., in a $110 million transaction.
Scottsdale Promenade, a 1 million-square-foot, mixed-use project, is one of the largest commercial properties in the Phoenix metropolitan area, located on 84 acres of land. The office component of the space consists of two four-story Class A buildings that total 256,176 square feet.
In July, Mark Lucescu, president of Lucescu Realty, told Commercial Property Executive that the Promenade is “a flagship property” that is outperforming most other mixed-use centers in the area. “If there are a handful of properties like this to invest in Phoenix, this is the one you’d want to buy,” he said. At the time of the transaction, “the property was 100 percent leased [and] had plenty of equity,” he noted.
According to NAI Horizon, the Phoenix office market, though in the doldrums through most of 2011, is starting to see some upward moves. A three-year run of continued unemployment, coupled with a flight to quality – which left many properties empty – left the market battered. But the fourth quarter of 2011 saw the office-vacancy rate drop 40 basis points from the previous quarter, finally resting at 20.7 percent. Rental rates, at year’s end, sat at $20.29 per square foot on average.
The center’s retail component is anchored by Lowe’s, PetSmart and Trader Joe’s.