Scottsdale Retail Asset Recapitalized as Improvements Are Set to Follow
- Jan 22, 2016
By Alex Girda, Associate Editor
Scottsdale, Ariz. – As the Valley of the Sun continues to heat up, investors are looking to cash in on their assets as property values continue to rise. This has resulted in deals such as the recently announced recapitalization of The Pavilions at Talking Stick, a retail power center in Scottsdale. The process was handled by HFF on behalf of owner De Rito Partners.
Led by Executive Managing Director John Pelusi, Senior Managing Director Kevin MacKenzie and Managing Director James Fowler, the HFF team arranged the joint venture equity partnership with PCCP. Following the creation of the new partnership, HFF arranged financing through Wells Fargo Bank. The funds were used in the acquisition, as well as the capital expenditures and site preparation for ground lease opportunities.
A 1.1 million-square-foot power center, The Pavilions is 91.3 percent leased and features anchor-tenants Target, Home Depot, Burlington Coat Factory, Conn’s Appliances, Hobby Lobby, Toys R Us, Petco, Ross Dress for Less, Michael’s and Mountainside Fitness. Currently consisting of more than 65 retail stores, the 47-building property was extensively renovated in 2008.
The center occupies 142 acres of land at 9001-9175 East Indian Bend Road right off Loop 101. Proximity to the Talking Stick Resort and Casino, as well as the 36-hole championship Talking Stick Golf Club, and Salt River Fields at Talking Stick, a spring training facility that is being used by the Arizona Diamondbacks and Colorado Rockies.
Image via The Pavilions at Talking Stick’s Facebook page