Whole Foods-Anchored Phoenix Retail Center Secures Refi
The grocery retailer is opening shop next year.
Jakosky Properties has received a $24.5 million refinancing loan for its 92,622-square-foot retail center in Scottsdale, Ariz., located at 7620 East Indian School Road, according to CommercialEdge information. City National Bank originated the note.
A Whole Foods Market is slated to open at the property in early 2026, replacing the previous grocery tenant, Fry’s Food & Drug. Western Retail Advisors, who is marketing the property, is looking to also find a tenant for a 16,000-square-foot unit to replace a previous Western Union location, as well as two other smaller spaces.
Jakosky Properties has owned the Scottsdale retail center since 2002, when the company acquired it for $7.4 million, the same data provider shows. The retail center had previously been the subject of a five-year, $10.9 million loan originated by RGA Reinsurance Co.
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Completed in 1975, the property includes three buildings sitting on 8 acres. The current tenant roster includes Subway, Sunchain Tanning, ATI Physical Therapy, Cosmo Prof, Orange Theory Fitness, Bad Jimmy’s, Merci French Cafe & Patisserie and Arizona Hair Co. Downtown Phoenix is some 13 miles west of the property.
The daytime population within a 3-mile radius reaches almost 125,000 people, with an average household income of $126,023 in the same area as of 2023, according to ESRI data quoted by Western Retail Advisors.
Scottsdale retail shows solid fundamentals
On the overall, Phoenix remained a relatively tight retail market, with direct vacancy at 5.3 percent as of last year’s final quarter, according to an Avison Young report. The Scottsdale submarket fared even better, with direct vacancy at 4.7 percent and the average direct asking rent at $34.67 per square foot, the highest of any Phoenix submarket and significantly above the $25.43 market average.
In an interview with Commercial Property Executive, First Washington Realty CEO Alex Nyhan discussed the growing need for small-format neighborhood stores because of their curated selection of products close to home, which makes shopping more efficient and personalized. Nyhan also noted that these retail centers are profitable for both customers and investors, due to the implementation of AI in managing inventory, which has significantly reduced costs.
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