Payson Village Center, a 140k sf, grocery-anchored retail center in Payson, AZ, was purchased by Progression Real Estate Investments for $15.075 mil ($108/sf). The property was sold by Hirani Oil Foundation.
The center sits on nearly 16 acres and is ideally located in the center of town at Payson’s busiest intersection of Hwy 87 and Hwy 260. The center includes Bashas’, a well-established Arizona grocery operator. It includes Bashas’, a well-established Arizona grocery operator. Other tenants at Payson Village include Dollar Tree, Big 5, Native Grill, Jiffy Lube, and Arby’s – all of which are doing well in the center.
In the coming years, the center’s tenants and new ownership will enjoy additional residential development in progress, as well as a proposed 250-acre Arizona State University satellite campus just East of Payson Village with a projected student population of approximately 6,000, with additional employees and faculty. Plans for the campus are in early stages and currently include a research center, student housing, and a convention center.
Christopher Tramontano, managing director, and Donald MacLellan, senior managing director, with Faris Lee Investments represented the buyer and the seller in the transaction.
“Payson Village was 87 percent occupied at the close of escrow and offered an investor the opportunity to add value through lease-up of vacant space, development of a well-located outparcel to the center, and procure historically low interest rate debt,” said MacLellan.