Mark Lucescu, President of Lucescu Realty, a market leading investment real estate services firm, announced today the sale of Lake Pleasant Pavilion Shopping Center in the City of Peoria in the Phoenix, Arizona metro area for $41.75 million. Lucescu Realty exclusively represented the interests of the seller, Kornwasser Shopping Center Properties, a private development firm, headquartered in Los Angeles, California, and procured the buyer, Excel Trust, a publicly-traded real estate investment trust, located in San Diego, Calif. This is Excel’s second acquisition in the Valley. Earlier this year the Company acquired Scottsdale Promenade for $166 million in a deal that was also brokered by Lucescu Realty.
Lake Pleasant Pavilion Shopping Center is a 373,016-square-foot community shopping center, anchored by Super Target, Marshalls and Bed Bath and Beyond. The Super Target, which totals 185,297 square feet, was tenant owned and not a part of the sale. Marshalls and Bed Bath and Beyond occupy approximately 43 percent of the gross leasable area that was conveyed. The blue-chip tenant roster also includes BevMo, The Dress Barn, Lane Bryant, McDonald’s, Tilly’s, Rack Room Shoes, The Men’s Wearhouse, Verizon, Hallmark, Rubio’s, Starbucks, Subway, Baskin Robbins, UPS, Sally Beauty Supply and Supercuts.
“It’s an institutional quality piece of real estate, built by one of the premier real estate development companies in the western U.S.,” noted Lucescu. “For decades Kornwasser has been building centers of the highest quality and this property is no exception," Lucescu further commented. “Kornwasser did a great job assembling the land, lining these tenants up and built a great center. Excel should to do well with its acquisition and in advancing their plans to continue their pursuit of high quality retail centers throughout the Valley."
Located at the southwest corner of Lake Pleasant Parkway and Happy Valley Road, Lake Pleasant Pavilion Shopping Center is situated on approximately 45 acres in northwest Phoenix. The center was built in 2007/2008 and is approximately 2 miles from Loop 303. The average household income within a 1-mile radius is $104,420.
According to Lucescu in discussing the latest market trends,"We expect core and core plus offerings to continue to garner the greatest demand due to the dearth of available inventory and the surplus of capital pursuing these types of offerings. Class B and C properties will continue to experience declining lease rates due to increasing vacancies and increasing competition from Class A assets as tenants trade up to higher quality locations with similar lease rates."
The sale of Lake Pleasant Pavilion is the first part of Kornwasser’s and affiliates plans to dispose of and redeploy the proceeds from over $100 million of shopping centers in Arizona through Lucescu Realty. During 2011, Lucescu Realty was recognized as the most active brokerage firm in the sale of larger, retail shopping centers in Phoenix, and in the southwestern U.S.
Lucescu Realty (lucescurealty.com) is a market leading investment real estate services firm that uniquely combines major capital markets expertise with a complete and thorough understanding of real estate fundamentals to execute a wide range of services on behalf of its clients. Scope of services include sale transactions, advisory/consulting, debt/equity placement, market research and financial services. Lucescu Realty specializes in individual property and portfolio transactions, on behalf of public and private companies worldwide, involving neighborhood, community, power, and lifestyle centers, regional malls, and suburban and central business district office buildings. The hallmark of Lucescu Realty is its ability to maximize value through its exclusive focus on sale transactions, access to the full spectrum of both public and private investors, intimate local market knowledge through its in-house group of market analysts, tailored marketing strategies, and depth of capital market experience. Lucescu Realty is annually recognized as one of the most active brokerage firms in the United States. Headquartered in Newport Beach, California, Lucescu Realty has regional offices in Phoenix, Arizona and Las Vegas, Nevada and plans to open an office in San Francisco later this year.