The Shops at 38th Street, a fully-occupied Arcadia Shopping Center, was sold this week for $6,100,000 or $265 per square foot. Nick Miner, CCIM of ORION Investment Real Estate represented the Seller Richard Oliver, who he also helped acquire the same property in 2004. The Buyer was Alturas Shops at 38th, LLC. The Shops at 38th Street offered the Buyer a rare opportunity to acquire a historically strong asset with a ton of curb-appeal, superior location, and cash-flow.
The Shops at 38th Street boast a strong tenant-mix with high historical occupancy; the shops were 100% occupied at the close of escrow. Tenants include the Whining Pig, Crumbl Cookies, Club Pilates, H&R Block, Blind Tiger Tattoo, Team 44 Fitness, and more in the main shopping strip. The Shops at 38th Street also include two freestanding buildings on the 1.67 Acre lot. Autumn Court, who’s been a tenant since 2006, sits on the northwest hard corner of the shops along 38th Street and Indian School Road, while BoSa Donuts, who’s been a tenant since 2011, sits at the other end of the center.
The positioning of this asset in the Arcadia Neighborhood lends significantly to the high historical occupancy. Situated between Scottsdale Fashion Square and the Biltmore the East and West, and Paradise Valley and the Phoenix International Sky Harbor Airport to the North and South, as well as nearly all of the Phoenix Metro’s major freeways, it’s easy to see why this neighborhood has become such a hot spot. A plethora of restaurants, shopping, as well as work and entertainment options, keep the area thriving. The 5-Mile radius around The Shops at 38th Street has nearly 554,000 people for daytime population.
Nick Miner commented on the transaction, “I helped the seller acquire this property over 16 years ago. It has consistently maintained a high occupancy rate over the years. The only reason the seller wanted to sell was due to health issues. These types of assets do not come on the market very often, which is why it garnered multiple offers. Even with the Pandemic, good real estate is good real estate and investors understand this. The new owner will do very well with this asset.”