Mixed-use retail assets attracting investors
“An interesting component of this sale was that one-half of the tenancy was occupied by Reveal Vineyard Church, which was recovering from the initial impact of the pandemic when they were restricted from in-person services,” says Mindy Korth, executive vice president of Colliers in Arizona. “With the opening of Loop 303, and the hyper-growth of residential units, there is an extreme shortage of locations for medium-sized congregations. Thus, throughout the far northwest valley almost every business park, and many strip centers have at least one worship center tenant. The buyer realizes this is a viable use and good credit for this type of space.”
Regal Properties of San Diego, represented by Maha Odeh-Arnold, purchased the center from IIP Oasis, an investment managed by Insight Investment Partners, a Henderson, Nevada real estate investment firm. Local investor ROI Mentor, LLC purchased two pad parcels situated on the 2.03-acre site and is now offering them for ground lease or build to suit. Korth and JK Jackson of Colliers in Arizona handled both sale transactions, and Jackson will continue to represent the new owners on tenanting the available spaces.
Mirage Oasis was built in 2009 and contains 25,849 square feet of retail space. The asset was placed on the market as an opportunity to purchase the center and pads together, or separately. The sale was highly successful, achieving 99 percent of the seller’s asking price. The center was 95 percent leased at the time of the sale, featuring Reveal Vineyard Church and eight additional retail tenants.
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Colliers in Arizona has served clients locally and globally for more than 40 years.