Buckeye’s Sundance Towne Center sold to Continental Realty for $54 million

Baltimore-based Continental Realty Corporation purchased Buckeye's Sundance Towne Center for $54.3 million in its initial expansion into the Arizona retail market, according to the firm.

The 203,525-square-foot regional market, located south of Interstate 10 at the intersection of S. Watson Road and W. Yuma Road, features nearly 50 retailers and restaurants, including Bealls Outlet, Boot Barn, and PetSmart. Continental claims the asset is over 94% leased.

"Sundance Towne Center is an institutional-quality asset and the perfect entry point for our expansion into the rapidly growing Maricopa County market which ranks third in the U.S. for the newest homes and apartments under construction," said Josh Dinstein, CRC's Senior Vice President, Acquisitions. "The center is well leased, with a diverse mix of best-in-class and high-performing restaurants and retailers. It is shadow anchored by some of the best retailers in the nation. The strategically located center aligns with our long-term investment strategy of acquiring irreplaceable assets with compelling retailers in affluent and rapidly growing residential corridors."

Neighbored by Walmart Supercenter and Lowe's Home Improvement, Continental believes its new asset is located within a highly populated Yuma Road and Watson Road corridor. Buckeye residents can expect some changes to the Towne Center.

"CRC's in-house leasing team intends to energize and strengthen the current tenant mix and attract new uses suitable for the market," Dinstein said.

CRC also plans to invest in property enhancement to improve tenancy satisfaction and customer experience.

Metrics on Sundance Towne Center

CRC believes the center is located in a premium retail corridor with a significant residential pipeline.

According to Continental Realty Corporation, more than 7,600 homes are under construction within a five-mile radius of Sundance Towne Center, and more than 30,000 new homes are planned. Development includes communities such as Verrado, which expects to add more than 11,000 new homes. Westpark and Monte Verde, also look to add 3,000 and 2,000 homes, respectively.

Built in 2008 across 32 acres, CRC claims the site encounters 73,000 vehicles per day.

Continental highlighted Sundance Towne's roadside visibility from Watson Road (nearly 40,000 vehicles per day) and Yuma Road (nearly 11,000 vehicles daily) in a press release. The development also has 12 access points and a 65-foot-tall tenant pylon sign.

More than 80,000 people, with an average household income approaching $120,000, reside within a five-mile radius of Sundance Towne Center, with a daytime population of nearly 250,000 workers within a three-mile radius. Their employers include Amazon, Bank of America, Carvana, Chewy, JPMorgan, State Farm Insurance, USAA and Wells Fargo.

According to Dinstein, his organization's interest in the property was fueled by the opportunity to capitalize on one of the country's fastest-growing markets. Market research company Placer.ai, which analyzes foot traffic at retail venues, reports that 12 Sundance Towne Center tenants currently perform in the 80^th percentile or better for visits per square foot of space in the core-based statistical area (CBSA), according to CRC's press release.

Michael Hackett, Jimmy Slusher, Ryan Schubert, and Zach Aulick of CBRE represented the seller, Shin Yen Management in the sale. Since the start of 2021, CRC has acquired $900 million worth of retail real estate, according to a press release.