Coast Meridian Properties Acquires Metro Phoenix Retail Asset

SanTan Gateway North is a multi-tenant retail center anchored by Walmart Supercenter. Image courtesy of Kidder Mathews

Coast Meridian Properties has acquired SanTan Gateway North, a 123,244-square-foot retail center in Chandler, Ariz., for $26.6 million, or $215 per square foot.

Kidder Mathews brokered the transaction on behalf of the seller, Jewell Capital. According to CommercialEdge data, the property last traded in 2019, for $16.9 million.

Located at 1035 S. Arizona Ave. on the southeast corner of Arizona Avenue and Loop 202 Freeway, on 17.1 acres, SanTan Gateway North offers convenient access to downtown Chandler’s business district. Adjacent to the center, there is a 44-acre mixed-use development, which is expected to generate additional economic activity for the area.

The Walmart Supercenter-anchored property has a variety of tenants, including O’Reilly Auto, Dollar Tree, Sky Zone and Shane Co. Additionally, the property includes three parcels ground-leased to Wendy’s, Del Taco and JPM Chase.

Multinational fast-food brands and financial institutions that offer reliable and stable tenants, draw a significant amount of interest from prospective buyers, said Kidder Mathews’ Senior Vice President Darren Tappen, in prepared remarks.

Phoenix’s retail market is strong, driven by a healthy labor market, expanding consumer base and positive demographics, according to a report from Matthews Real Estate Investment Services. Additionally, year-over-year as of the second quarter of 2023, net absorption of retail space across the metro reached its highest level since the Great Recession, indicating a healthy demand for retail properties, the same source indicates.

Tappen, together with Senior Vice Presidents Nathan Thinnes and Peter Beauchamp of Kidder Mathews were part of the team that represented the seller in the transaction.