Whitestone Buys Phoenix Retail Asset for $25M

Arcadia Towne Center. Image courtesy of Whitestone REIT

Whitestone REIT has acquired Arcadia Towne Center, a 70,000-square-foot shopping center in Phoenix’s Arcadia neighborhood, for $25.3 million. The seller was LNR Partners, according to CommercialEdge data.

Safeway, which shadow-anchors the property, was not included in the deal. Whitestone expects to finance this acquisition by using proceeds generated from its 2023 dispositions.

Arcadia Towne Center came online in 1966 at 4730 E. Indian School Road, the same data provider shows. The property’s tenant roster includes CVS, Tutor Time, Mathnasium, Over Easy, Sole Sports and Pluff and Fluff Grooming.

READ ALSO: How New Entertainment Concepts Are Impacting Retail

The property is roughly 10 miles from downtown Phoenix, in a dense retail corridor. The shopping center’s traffic is fueled by the nearby neighborhoods, where the average household income within a 1-mile radius is $165,000, and by the presence of approximately 1,500 students at the nearby Arcadia High School.

Retail transactions surpass 166 million in Greater Phoenix

The combined area of retail inventory in the Greater Phoenix region exceeded 189 million square feet by the end of the first quarter, according to an Avison Young report. The vacancy rates for retail properties in Phoenix continued their decline in all submarkets, resulting in an overall decrease of 30 basis points from 5.9 percent in the last quarter of 2022, the same source reveals.

At the same time, investment sales in the first quarter experienced a slowdown compared to historical highs. A total of 28 transactions have closed during this period, amounting to $166.2 million.