4840 North 83rd Avenue, Phoenix AZ

In 2016, MEI Real Estate Services acquired a value-add Walgreens Anchored Shopping Center in Phoenix, AZ for $1.8M on behalf of MEI Capital Partners. The outparcel property located at 4840 N. 83rd Avenue was a multi-tenant strip center near the signalized intersection of N. 83rd and Camelback Avenue. The center consisted of national and regional tenants and was in need of lease restructuring and new tenancy. The team at MEI came in and successfully negotiated assignment of troubled tenant leases, extended national tenant leases, and successfully leased up all available vacancy, adding to the synergistic tenant mix. Knowing a future sale was on the horizon, MEI worked to structure strategic rental bumps for the new tenancy and reposition the center for sale as a stabilized, core-investment opportunity. MEI held the center for 22 months and listed the center for sale in 2018 at an attractive 6.75% cap on an increased NOI based on 100% occupancy. During the hold period, the property boasted an 8% cashflow return and a 38% IRR. The MEI brokerage team obtained multiple bids to purchase the property at asking price within days of listing the property for sale and successfully sold the asset to an investor for $2.2M, yielding a $400K net profit from the disposition for the investor group. By moving our clients in the right direction, MEI continually demonstrates elevated ways to transact real estate in an opportunistic market to increase wealth.