ADD-VALUE SHOPPING CENTER
SOLD
Camelback West
West of the SWC of 35th Ave & Camelback
3601 W. Camelback Rd, Phoenix, AZ
| Price | $2,525,000 | ||
| Size | 44,460 SF | ||
| Price per SF | $56.79 | ||
| Cap Rate | 7.03% (Actual) | ||
| Occupancy | 61.0% |
The subject property was built in 1954 according to County records and remodeled in recent years but the date could not be confirmed. The buildings are configured in an “U” shape facing Camelback Road, a major east-west thoroughfare. The property is priced at well below replacement cost at $64/SF. The cap rate is 6.28 based on the current 61.0% occupancy, not proforma. There is over $1M in immediate upside by leasing the vacant space at conservative rents. The rents are low and average only $9.34/SF.
Grand Canyon University (GCU) is located just across the street to the northeast. The 179 acre campus is home to 5,800 full-time & 25,300 part-time undergrads and over 17,000 part-time grad students. Total enrollment is about 68,000 including on-line students. Campus amenities include a 7,000 seat arena, a 55,000 sq. ft. fitness and recreation center, renovated Student Union, popular dining options across campus and resort-style swimming pools.
Grand Canyon Education Inc. (Nasdaq: LOPE) is in the midst of $180 million in construction projects on its GCU campus, but has a total of $550 million planned over the next four years. In addition to the $180 million projects on the books for 2016, plans call for spending an additional $100 million in 2017 for two apartment-style dorms, parking garage, and Division I athletics improvements. In 2018, GCU plans to spend another $100 million to build three more apartment-style dorms, an additional restaurant and library space. In 2019, the university has budgeted $85 million to build one apartment-style dorm and a classroom building, and another $85 million for 2020 for another apartment-style dorm and parking garage.
More information on GCU is in the marketing package. The rapid expansion of this university should have a major positive impact in the surrounding area.
The I-17 freeway is 1.5 miles to the east and the Grand Avenue Expressway is one mile to the west.
