Phoenix-Area Retail Center Trades for $22M
- Mar 07, 2018
Talavi Towne Center, a 118,377-square-foot regional community center, has traded in Glendale, Ariz. Kimco Realty sold the asset for $21.9 million to Talavi Bell LLC. The Fincham Dempsey team of Lee & Associates Arizona arranged the transaction, representing both parties.
The retail center is located at 5845 W. Bell Road, in an area including multiple other retailers and restaurants. The asset is 97 percent leased and anchored by Walmart. Other tenants include Cricket, Dollar Tree, Michaels, Payless Shoes and Mor Furniture.
According to Lee & Associates Arizona, the 330,000 residents living within a five-mile radius have an average annual household income of more than $73,000. Additionally, the location has a daily traffic count of more than 72,000 vehicles. A bus station is adjacent to the retail property, while several apartment communities are located toward the western end of Bell Road.
The infill location where Talavi Towne Center is located represents a high barrier to entry for any new retail development, said Principal Patrick Dempsey, of the Fincham Dempsey team, in prepared remarks. Dempsey, along with Principal Jan Fincham, comprised the brokerage team in this transaction.
Shifting retail dynamics
General trends in retail have shifted lately, in part because of the recently enacted Tax Cuts and Jobs Act, but credit goes to rising confidence levels in consumers and other factors, as reported by Marcus & Millichap’s 2018 Retail Investment Forecast. Scott Holmes, senior vice president & national director of the National Retail Group at Marcus & Millichap shows that “the national average vacancy rate now stands at its lowest level since the 1990s. … Within this context, rent growth is expected to maintain momentum.”
Image courtesy of Lee & Associates Arizona