12426 N. 28th Dr.
|Price per SF||$120.50|
|Cap Rate||6.8% at the current occupancy|
|Year Built||1979 (Remodeled 2004)|
The subject property is a very attractive shopping center that was built in 1979 and extensively remodeled in 2004 and now looks like centers you see in Scottsdale. All of the in-line space directly faces 28th Drive. There is a freestanding Dairy Queen pad building on the hard corner that is not included with this offering. Dairy Queen has been at this location for over 42 years.
The center is being offered at nearly half of replacement cost at $121/SF and is one of the lowest price per foot (if not the lowest) centers listed on CoStar. The existing rents are very low and average only $8.87/SF creating upside and eliminating downside risk. This center could be ideal for an investor looking to increase the value by raising the low rents or for an owner/user that also wants some rental income. This is the first time this property has been offered for sale in 19 years.
The NOI with a 5% vacancy factor is $129,865 but most of the month to month tenants are at very low lease rates, some at half of the market rate, so if there is a vacancy the proforma income is likely to increase substantially.
This center is conveniently located very near the I-17 Freeway. The 101 Freeway is 4.5 miles to the north. The Metrocenter Mall is just over a mile to the south and is in the process of a major redevelopment. Arizona State University West Campus is two miles to the west on Thunderbird. The property benefits from an extremely dense population within a 1, 3 and 5 mile radius.