Alturas Capital Partners Acquires Phoenix Retail Center
Written by Diana Hays | January 3, 2022
Alturas Capital Partners has acquired Metro Towne Center, the real estate investment company’s second retail property in the Phoenix, Ariz. area.
Metro Towne Center is 140,644 square feet and was built in 2003. It is situated on 14.16 acres just off the interchange at I-17 and Peoria Avenue, a highly-trafficked and easily accessible area. The shopping center is 94.9% occupied with 25 strong tenants. Key tenants include: Ross, PetSmart, DD’s Discounts, and Big 5. Most of the tenants at this retail center are national brands.
While Metro Towne Center is already located within a densely populated area with good demographics for retail, the area is set to evolve and improve further with a major redevelopment project nearby. The Phoenix City Council recently approved plans to raze the Metrocenter Mall and have it redeveloped as a town center-style project with high-rise multifamily housing, self-storage properties and retail. The city is investing $150 million in a new light rail station that's expected to be a focal point for the planned village. The station is under construction and scheduled to be finished in 2024 as part of the Metro rail line's northwest extension.
The Village is planned to provide about 4,100 parking spaces in up to seven garage decks conveniently located for use by the community, Village residents, visitors and light rail station park-and-ride users. The project, one of the largest mall redevelopments by dollar amount in Arizona history, has been a long time coming and is a major win for the city and surrounding properties and will have a positive impact on Metro Towne Center years into the future.
Arizona’s climate and access to outdoor activities have given it a quality-of-life advantage bringing an increasing number of people and companies into the area. Since 2019 Phoenix has been the 10th largest metropolitan area in the United States and continues to grow.
Travis Barney, Chief Executive Officer of Alturas Capital Partners said, “We are excited to be adding Metro Towne Center to our growing portfolio, this asset has an excellent foundation of quality tenants and will benefit from the continued growth of the Phoenix market. Additionally, the re-development of the Metrocenter Mall will create exciting opportunities in the years to come.”
Alturas Capital Partners now has six properties in the Phoenix area including another shopping center, The Shops at 38th, which was acquired in August of 2020. As the portfolio continues to expand, they have added new team members including a property management team in Phoenix.
Ryan Schubert and Michael Hackett and their team at Cushman and Wakefield, represented the seller. Eric Wichterman with Cushman and Wakefield also advised on the transaction and was instrumental in its successful completion.