Firm purchases Goodyear retail center for $23.5 million
Citing confidence in the West Valley and metro Phoenix economy, a real-estate private equity firm bought a Goodyear retail center for $23.5 million.
Dallas-based TriGate Capital LLC purchased Canyon Trails Towne Center, 625 S. Cotton Lane, which is about a mile south of the future Loop 303 and Interstate 10 interchange scheduled to be completed in the fall. The retail center is at the northeastern corner of Yuma Road and Cotton Lane.
“We have purchased 11 retail properties in the Phoenix metro area since 2011,” said TriGate Capital Vice President Keith Schneider. “This is the largest single property, and we believe it’s the highest-quality construction with the best shadow anchor, Super Target.”
The Super Target owns its site within the retail center, as opposed to leasing it, which makes it a shadow anchor real-estate terminology. Home Depot also owns a site within the center that it hasn’t developed. Canyon Trails includes 22 built pads.
The Goodyear center is different from the other centers TriGate Capital owns in the Valley in that there is room for additional development, Schneider said.
Canyon Trails Towne Center has about 202,200 square feet of existing buildings on 61 acres, and it has the potential to grow to 850,000 square feet.
The acquisition could help double TriGate Capital’s presence in metro Phoenix. TriGate now owns about 800,000 square feet of developed space in its other 10 retail centers combined within the greater Phoenix market.
TriGate was drawn to the Goodyear retail center because of several factors, said Paul Sharp, TriGate Capital director of asset management. That includes an improving economy, which is driving a resurgence in housing, as well as the looming completion of the freeway interchange.
“What we saw was a good long-term value in the West Valley,” Sharp said.
“We plan to populate the center with good quality retailers, restaurants and different uses on the out parcels that will attract more visibility and traffic at the center,” Sharp said.
The out parcels are along Yuma Road and Cotton Lane.
Canyon Trails was developed in 2008 by Phoenix-based Vestar. Cassidy Turley, a commercial real-estate services provider, announced the sale of Canyon Trails Towne Center on Dec. 23rd. The seller was a Vestar-formed partnership.