Phoenix-Area Shopping Center Fetches $23M

By Evelina Croitoru

Palm Valley Marketplace

Sterling Org. has acquired Palm Valley Marketplace, a grocery-anchored shopping center in Goodyear, Ariz., for $22.5 million. The asset was purchased from a subsidiary of Regency Centers on behalf of Sterling’s institutional core fund, Sterling United Properties I LP. The deal marks the company’s first acquisition in the Phoenix market and is the seventh asset acquired in the western region in the past year and a half.

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Located at 14175 W. Indian School Road, the 107,633-square-foot shopping mall is anchored by Safeway, which is one of the property’s original tenants. Additionally, the center hosts companies such as The UPS Store, Nationwide Vision, GNC, FastFrame and Oreck.  The building was completed in 1997 and extensively refurbished in 2013. The asset is situated roughly 17 miles away from downtown Phoenix, in an area with 70,000 people living within a three-mile radius, with the average annual household income of more than $150,000.

“We anticipate that Palm Valley Marketplace will produce the consistent cash flow our investor partners signed up for when they invested in our Sterling United Properties vehicle,” Brian Kosoy, managing principal, president & CEO of Sterling Org., said in prepared remarks.

Michael Hackett and Ryan Schubert of Cushman & Wakefield led the transaction team on behalf of Sterling.

Image courtesy of Eisenberg Co.