Westwood Financial, a leading commercial retail real estate investment firm, is pleased to announce the successful sale of Ahwatukee Mercado, a well-established grocery-anchored shopping center in Phoenix, Arizona. The property was sold to a private buyer after a hold period of 3.7 years, resulting in a profitable opportunistic return and an impressive equity multiple of 2x.
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Ahwatukee Mercado, built in 1985, is prominently situated at the corner of 48th Street and Elliot Road, a prime location in Phoenix. The 125,716-square-foot center is anchored by Safeway (not included in the sale), one of the nation’s largest grocery chains. In addition, the property features two free-standing restaurant pads and a diverse mix of national, regional, and local retailers, including Great Clips, H&R Block, Subway, Dogtopia, and Biscuits Restaurants.
Upon its original purchase in September 2019, Ahwatukee Mercado presented immense growth potential. With an initial leased occupancy of 64%, Westwood Financial implemented a strategic leasing and management approach, resulting in significant improvements. At the time of the sale, the shopping center boasted a leased occupancy rate of 95%, a testament to the successful execution of Westwood Financial's vision.
Mark Bratt, CEO of Westwood Financial, expressed his satisfaction with the sale, stating, "We are pleased with the successful sale of Ahwatukee Mercado and the excellent returns it generated for our investors. This transaction highlights our ability to identify and acquire prime properties with untapped potential, enhance their performance, and create value."
The financial metrics achieved during the hold period demonstrate the success of Westwood Financial's asset management strategy. The property delivered to investors an average annual Cash on Cash distribution of 6.8% and total NOI growth of 61.3% resulting in a remarkable Net Operating Income Compounded Annual Growth Rate (NOI CAGR) of 13.8%.
The sale of Ahwatukee Mercado exemplifies Westwood Financial's commitment to delivering exceptional results for its investors and optimizing the value of its shopping center portfolio. With this successful transaction, Westwood Financial continues solidifying its position as a leader in the commercial real estate industry.
About Westwood Financial
Westwood Financial owns, manages, and operates over 125 high-quality shopping centers in top U.S. metropolitan markets, including Atlanta, Charlotte, Dallas, Denver, Los Angeles, Orlando, Phoenix, and Raleigh. Top-tier grocers and leading service and experiential-based operators primarily anchor the centers. Established in 1970 by Howard Banchik and Steven Fogel, Westwood Financial is headquartered in Los Angeles, with regional offices in Atlanta, Dallas, and Phoenix. More information is available at www.westfin.com.
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Contacts
Matthew Loving
Director of Investor Relations
MLoving@westfin.com
