Vestar Sells Metro Phoenix Retail Center for $62M

The 245,000-square-foot Crossroads Towne Center was 99 percent leased at the time of sale.
Crossroads Towne Center. Image via Google Street View

Consolidated-Tomoka Land Co. has purchased Crossroads Towne Center in Chandler, Ariz., for $61.8 million. This purchase equates to a going-in cap rate of roughly 7.9 percent. Maricopa County resources show the seller of the 254,000-square-foot asset as Vestar.

The buyer partially financed the acquisition using 1031 like-kind exchange proceeds from two different deals that took place in 2019. In October, the company sold the controlling interest from its land portfolio to Magnetar Capital for $97 million. In November, Consolidated-Tomoka also sold a portfolio of 20 assets to Alpine Income Property Trust.

Located at 3757 S. Gilbert Road just south of the Santan freeway and adjacent to the 250-acre mixed-use Rivulon, the asset is 25 miles of downtown Phoenix. Home Depot and Wal-Mart anchor the retail center, even though they were not part of the deal, as well as a 12-screen Harkins Theatre and Bob’s Discount Furniture. The property is 99 percent leased to 32 tenants with a weighted average lease term of roughly five years. The tenant roster includes Chick-fil-A, JPMorgan Chase and Olive Garden. Vestar will manage the asset and JLL will provide leasing services.

Recently, Consolidated-Tomoka expanded its presence in Florida with the $63 million acquisition of The Strand. The 212,000-square-foot shopping center was 95 percent occupied at the time of sale.