Macerich recently sold one of Flagstaff’s top shopping centers for $23.5 million. The 268,000-square-foot property was located at a premier retail destination and boasted a strong industry presence with long-term occupancy and recent tenant renewals including Home Depot, Petco, Best Buy and World Market – 85% of which had been in the center for at least 10 years.
An all cash 1031 investor from northern California purchased the property with Faris Lee Investments brokering the deal. The favorable long-term ground lease with Arizona allowed investors to purchase below replacement cost ($99 per square foot) while also allowing 100% depreciation on investment (excluding Home Depot). These features made it an attractive option for those seeking reliable returns on their investment according to Faris Lee’s Don MacLellan.
