PRESCOTT, Ariz. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, has completed the sale of Willow Creek Village, a 165,065-square-foot shopping center anchored by Safeway in Prescott, Arizona. The sale price was $13.1 million.
Hanley Investment Group Executive Vice President Kevin Fryman, President Edward Hanley and Vice President Lee Csenar represented the seller, Columbus Pacific Properties of Santa Monica, California. The buyer, Glenwood Development Company, LLC from Mesa, Arizona, was self-represented.
Located in the heart of Prescott on 15.26 acres at 1042-1048 Willow Creek Road, the 97%-occupied shopping center includes Safeway, C-A-L Ranch Stores and Bealls Outlets, which together occupy 81% of the shopping center. With 25 stores in Idaho, Utah, Nevada and Arizona, C-A-L Ranch Stores offers farm and ranch supplies, western apparel and footwear, sporting goods, home décor, tools, pet and livestock supplies and hardware. Beall's, Inc. is the parent company of Bealls Outlet Stores, Inc. The corporation operates over 500 retail stores.
“Safeway has done very well in this location and has successfully operated at Willow Creek Village since 1996,” said Fryman. “In 2006, Safeway underwent a major renovation to the store and, in 2013, executed an early lease extension.”
In addition to anchor tenants Safeway, C-A-L Ranch Stores and Bealls Outlet, the shopping center, which was renovated in 2017, includes tenants Check Into Cash, Dunn-Edwards, Little Caesars, Snap Fitness and UPS Store.
“More than 80% of the shop tenants (2,600 square feet or less) have operated in the center since at least 2010,” said Fryman. “Snap Fitness recently executed a lease in 2017 and Dunn-Edwards executed an extension to their lease in 2019, demonstrating continued leasing momentum at the center.”
The shopping center is easily accessible from Willow Creek Road (with 25,700 cars per day) and Iron Springs Road (22,400 cars per day).
Willow Creek Village is located near Yavapai Regional Medical Center (with 206 beds and 1,400 employees), Prescott High School (1,600 students), Prescott YMCA, Walmart Supercenter, Big Lots! and other regional and national retailers. Prescott Municipal Airport, which is also nearby, offers direct flights from Los Angeles and Denver.
Prescott metropolitan statistical area is Arizona’s third-largest MSA with nearly 232,000 people. Since 2000, there has been a 17% increase in population and 29% growth in the metro area. There are 20+ master-planned communities nearby that have been approved by the city and county.
Historic downtown Prescott draws over 500,000 people per year staying overnight in the 1,300 hotel rooms. Prescott Frontier Days draws 27,000 spectators per year for The World’s Oldest Rodeo, which celebrated 132 years this year.
Prescott is nestled at an elevation of 5,200 feet above sea level amongst the largest stand of ponderosa pine forests in the U.S. and was ranked #4 "Best City for Retirement" by Money Magazine and #26 "Best Performing Small City" by the Milken Institute.
“Investors and the eventual buyer were very attracted to the overall strength of the location and the long-standing, historical success of Safeway at the center and the tenant mix of 90% national and regional chains including anchors C-A-L Ranch Stores and Bealls Outlet Stores, which have done well at this location,” Fryman said.
“The buyer pool for grocery-anchored shopping centers with junior boxes is not as deep as traditional grocery/drug anchored centers. However, savvy investors recognize that if the sales are strong and the rent is below market, the risk that is associated with boxes in today’s market is mitigated. Box tenants C-A-L Ranch Stores and Bealls Outlet Stores at Willow Creek Village enjoyed favorable metrics, which this buyer understood,” said Fryman.
Hanley Investment Group is marketing a similar type of property for sale in Phoenix, Cactus Village, a Walgreens-anchored shopping center with co-anchors Sam Ash Music Store and Youfit Health Clubs. The 99%-occupied, 75,483-square-foot shopping center is located one mile from the Arizona State University West Campus, with over 10,000 students. According to Fryman, Cactus Village is listed for sale at $10,365,000, representing a cap rate of 8%. “Cactus Village represents another great yield opportunity for investors that understand the value opportunity here.”
Fryman continues, “The recent decline in interest rates will continue to increase demand as the buyers for these investments are yield-oriented. There is additional confidence that rates will remain low for an extended period of time now that the Fed has lowered rates by 25 basis points.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.