JLL Capital Markets today announced that it has completed the sale of $ 165.25 million and secured $ 102 million in acquisition financing for La Encantada, a 246,256 square foot outdoor lifestyle center in Tucson, Arizona.
JLL represented the vendor, Macerich Company. A group of local investors bought the asset as part of a strategic sale. In addition, working on behalf of the new owner, JLL arranged the fixed rate, term and interest only acquisition loan with an investment bank and a financial services company.
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Completed in 2003, La Encantada is 93 percent leased to some of the most recognized names in apparel, homeware, beauty and jewelry including Crate & Barrel, Tiffany & Co., West Elm, Anthropologie, Athleta, Lululemon, Pottery Barn, Madewell, Warby Parker, Williams-Sonoma, and Bluemercury. Additionally, the retail center is home to popular health, wellness and fitness options Barre 3, Core Health & Fitness, Fuchsia Spa and Laseraway, as well as a variety of full-service retailers and food and drink specialties such as AJ’s Fine Foods, RA Sushi Bar and Restaurant, North Italia and Blanco Tacos + Tequila.
Located near the base of the Santa Catalina Mountains in the highly desirable Foothills Retail submarket, La Encantada is located at 2905 E. Skyline Dr. at the intersection of Skyline Dr. and Campbell and is surrounded by some of the most popular neighborhoods. more prestigious, wealthy and sought after neighborhoods. More than 35,000 residents earning an average annual family income of $ 120,785 live within a three mile radius of the property. Additionally, the center is the premier retail asset in Tucson and is within an extensive shopping area due to the presence of large exclusive retailers and restaurants in the market.
The JLL Capital Markets sales and investment advisory team representing the seller was led by Managing Director Patrick Dempsey.
âThis asset is the crown jewel of Tucson’s retail business,â said Dempsey. âMany of La Encantada’s stores are exclusive to the region, with a raffle expanding the entire market. The lack of land available for new development in the Foothills Retail submarket makes La Encantada an irreplaceable property.
The JLL Capital Markets debt advisory team that represented the new owner included Senior Managing Director Jeremy Womack and Analyst Zane Coffman.
âThe lender’s performance of CMBS was best in class, and we are pleased with the incredibly low interest rate and term-only interest payments,â Womack added. âAlthough the market for loans secured by certain commercial properties can be difficult, the high quality of this asset, the excellent mix of tenants and the exceptional sponsor of the partnership between the three local owners have helped us secure the best loan terms. . for the new owner.
JLL Capital Markets is a global full service provider of capital solutions for real estate investors and occupiers. The company’s in-depth knowledge of the local market and global investors provides the best solutions for clients, whether it is investment sales and advice, debt advice, equity advice or a recapitalization. The company has more than 3,000 capital markets specialists around the world with offices in nearly 50 countries.