By: Paul Dionne | Vizzda.com
The Wal-mart anchored neighborhood shopping center at the southwest corner of 35th and Southern Avenues came under new ownership last week, as Kevin Christiansen of Paces Lodging Corporation acquired the property in a 1031 exchange. The Wal-mart and OfficeMax sub-anchor, as well as a Jack-in-the-Box pad space did not convey in the sale. Christianson paid $4,592,600 in cash and secured the property under a new $5.468m deed of trust with Western State Bank, maturing May 10th, 2024.
The 41,962 ft2 inline portion is comprised of two buildings demised into twenty-four lease-able spaces with tenants such as: Rainbow USA, Cigna, SuperCuts and Cricket Wireless. The portion was completed in 2008 and sits on 9.02 acres, zoned C-2, including a 0.63 acre vacant pad space. According to the leasing broker, Cassidy Turley, the property is currently 46% vacant, up considerably from the 29% vacancy rate referenced by the current seller, Bruce Galloway of Pacific West Land, when it was previously acquired. The current price represents a per square foot value for the property of $170.
Pacific West Land acquired the property in September of 2010 through a deed-in-lieu-of-foreclosure, rather than a trustee’s auction. The original developers of Laveen Village secured the property under a $15,387,602 deed of trust with California Bank & Trust. A week before taking possession, Pacific West Land acquired the note from California Bank & Trust for a reported $8.0m or 65% or replacement cost. Thereafter, Pacific West Land sold the Jack-in-the-Box in December 2010 or $1.225m and the OfficeMax in June 2011 for $3.2m, meaning that prior to last week's sale, Pacific West Land had cleared more than half of its basis and earned an return of 44.37% on its distressed debt acquisition.