Shopoff Realty Investments (Shopoff), a California-based private real estate firm and sponsor of public and private investment programs, recently announced the successful sale of a shopping center and developable pad in Mesa, Arizona.
After an 18-month ownership period, August Ranch Marketplace, an 80,247 square-foot grocery-anchored plaza completed in 2006, was sold for $14.05 million providing a return that exceeded Shopoff’s projections.
“When we acquired Augusta Ranch Marketplace it was undercapitalized and in dire need of new ownership management,” said William Shopoff, President and CEO of Shopoff Realty Investments. “We specialize in value-add opportunities and pride ourselves on turning around underperforming properties like Augusta Ranch, so it was an ideal investment opportunity for our team.”
Mr. Shopoff continued, “Now, just 18 months later, we’ve recapitalized the property, improved tenancy and have created meaningful value for our investors – it’s a home run.”
“Another way we transformed opportunity into value with this asset was working with the city of Mesa to prepare the adjacent vacant pad for development, and leasing a portion of the pad to a franchisee of Dairy Queen for 20 years, realizing additional untapped upside,” added David Placek, Executive Vice President of Shopoff Realty Investments’ Commercial Properties Division.
Anchored by Bashas’ an Arizona-based grocery store chain of 130 locations, the market place provides plenty of traffic for tenants. According to 2009 statistics from the city of Mesa, approximately 16,000 cars drive by Augusta Ranch Marketplace on a daily basis and as of 2011, about 83,000 people lived within a three mile radius.
Additional tenants include Sylvan Learning Center, Geno’s Pizza, and Great Clips, among others.