Multiple Bids Go for Rare Net-Lease Offering

Glendale’s population has increased 13 percent since 2000 from its perch some 10 miles northwest of Phoenix. One of its most recognized centers is Talavi Town Center, where a 33,300-square-foot single-tenant retail building ground-leased to a discount and grocery store tenant recently sold for $16.2 million.

The investment-grade tenant has occupied the building since 1995 and redeveloped the store into the current footprint in 2008 to meet Glendale’s growing population and uptick in customer volume. The high-performing store is situated on 3.4 acres at 5845 W. Bell Rd. in the Arrowhead Retail corridor, a dense retail trade area that welcomes 2.2 million customers annually. The property is at the high-traffic intersection of Bell Road and 59th Avenue, which has traffic counts of more than 72,000 vehicles per day.

The JLL capital markets team representing the seller was led by director Adam Friedlander and managing director Patrick Dempsey.

“There are not many high-quality investment-grade net-lease investment offerings currently available for sale in the marketplace,” Friedlander said. “The right mix to offer in today’s environment is single-tenant assets with investment-grade credit and strong underlying real estate fundamentals. The demand far exceeds the supply, so we were able to attract attention from a wide spectrum of buyers including institutional capital, REITs, high-net-worth buyers and private family offices. Multiple bids were received and eventually we selected a private 1031 buyer through a best-and-final process.”