Phoenix, AZ – Essex Financial Group (“Essex”) secured $40.0M in financing for the acquisition of Arcadia Crossing, a 450,000 SF grocery-anchored power center in Phoenix, Arizona. Essex worked on behalf of the buyer, a private family office, who has decades of experience in retail investment and management. The retail center was 91% leased at the time of sale and was occupied by a mix of national/credit tenants, in addition to having Costco as a shadow-anchor. Anchor tenants included Fry’s Food & Drug (S&P: BBB), Target (S&P: A), Burlington (S&P: BB), and Conn’s HomePlus. Other national retailers at the five-building property included Ross, Petco and Five Below.
Arcadia Crossing is situated on 44 acres across a full block in the heart of Phoenix. It is the premier retail center in the metro area and benefits from eight points of ingress/egress with daily traffic counts in excess of 80,000 vehicles. More than 300,000 residents with an average household income of $86,000 live within five miles of the property. Arcadia Crossing has excellent visibility along E. Thomas Rd and 44th Street and the Property has exhibited strong fundamentals since it was developed from the ground up in 1995. The two largest tenants, Frys and Target, have been at this location since it was built and had substantial lease term remaining at the time of purchase.
Essex secured the fixed-rate, non-recourse permanent loan with a prominent national life insurance company at a competitive interest rate. The loan included a substantial interest-only component and provided the Buyer with prepayment flexibility in the second half of the loan to match their business plan.
Essex’s Capital Markets team was led by Paul Donahue, Cooper Williams and Nate Schneider.
About Essex Financial Group
Essex Financial Group is a commercial mortgage banking firm headquartered in Denver, Colorado, specializing in commercial real estate debt and equity placement. For over 30 years, Essex has helped its clients navigate the capital markets effectively and efficiently to identify the best capital source and structure to meet their needs. For further information, please visit essexfg.com