$27.525M sale of dominant grocery-anchored retail property in Arizona closes
JLL Capital Markets closed the sale of the 96,424-square-foot Rillito Crossing Marketplace in Tucson, Arizona
Phoenix, Jan. 17, 2024 – JLL Capital Markets announced today that it has closed the $27.525 million sale of Rillito Crossing, a 96,424-square-foot, grocery-anchored retail center in Tucson, Arizona.
JLL represented the seller, Epic Real Estate Partners and Centerbridge, and Prairie Hill Holdings acquired the asset.
Completed in 2008, Rillito Crossing Marketplace is currently 96% leased to a mix of local and national tenants consisting of grocery, fitness, health / wellness, restaurants and other complimentary uses. The property is anchored by Sprout’s, which has over six years of lease term remaining and recently completed a $1.2 million interior remodel. Additional tenants include Sola Salons, LA Fitness, Adrian’s Barbershop, Smoothie Factor, JK Nails, The Joint Chiropractic, The Tea Hub, Dao’s Tai Pan’s and Rita’s Italian Ice Custard. The center also includes two vacant land parcels, totaling 2.78 acres that are prime for additional retail development.
Located at 4206 - 4282 N 1st Ave., Rillito Crossing Marketplace is located in Tucson’s premier Oracle / Wetmore retail trade area, offering a large national presence and wide consumer draw. Within a five-mile radius is a dense population of 243,000 people, and Tucson Mall and the affluent Catalina Hills are adjacent to the property. The center is approximately four miles south of the University of Arizona, home to over 44,800 students. and is within a quarter mile of over 1,150 apartment units.
The JLL Capital Markets Investment Sales and Advisory team was led by Managing Directors Patrick Dempsey and Bryan Ley.
“Grocery-anchored shopping centers are performing at a record high 95% occupancy across the U.S., while new development activity is minimal. Investor interest continues to be strong in this resilient retail category due to increasing rental rates and strong fundamentals,” said Dempsey.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Epic Real Estate Partners
Headquartered in Austin, Texas, Epic Real Estate Partners buys in top 40 non-gateway markets, select college towns and resort communities and markets with unique economic drivers, providing its institutional partners with exceptional risk-adjusted returns. Founded in 2012 by three veterans of the retail institutional real estate sector with more than 80 years of experience between them, Epic’s internal operational and management capabilities, along with extensive capital markets and investment management expertise, provide a competitive advantage in its chosen area of focus.
About Centerbridge
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for its investors. The firm was founded in 2005 and as of December 31, 2023, has approximately $38 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. Centerbridge Partners, L.P. was founded in 2005 based on the complementary relationship between its strategies, Private Equity, Private Credit & Real Estate, and has built a unified team to invest across asset classes, sectors and market cycles.
About Prairie Hill Holdings
Prairie Hill Holdings (PHH) is a private real estate fund that enables individuals and institutions to invest directly in a diversified portfolio of high quality, high-yielding, yet low risk commercial real estate assets. We acquire and manage well-located and well-built properties that will generate exceptional annual cash-on-cash returns and strong risk-adjusted long-term capital gains.