Publish Date: 08-05-2016

Volume: XXII

Number: 30

REDEVELOPED CENTRICA PROJECT IN MESA SELLS IN DOUBLE ESCROW FOR $32.5 MILLION

Photo Credit: JLL

Mesa – A redeveloped former retail plaza in Mesa has changed hands from a Phoenix developer to a New York City, N.Y.

investor to a Brooklyn, N.Y. investor in a $32.5 million double escrow. The Manhattan investor made a quick $2.5

million in the deal, which involved the sale of a 117,000-square-foot back-office project located west of Fiesta Mall at

1550 W. Southern Avenue. The 9.1-acre property, known as Centrica, is fully occupied by Santander Consumer USA

Holdings Inc. (NYSE:SC). The consumer finance company, which plans to have 1,000 employees in the Mesa operation,

has a 10-year lease on the property until 2025. In the first leg of the flip deal, SL Mesa Realty Owners LLC in New York

City (Mark Karasick, member) paid $30 million ($256.41 per foot) to buy the building. The seller in the cash transaction

was PRI Mesa LLC, formed by Phoenix Rising Investments LLC in Phoenix (Michael Hsiung, mgr.). The sale was

brokered through Meridian Capital in New York City and Matt Coxhead and Ryan Bartos, formerly of Savills Studley

and now with JLL in Phoenix. On the same day of that sale, public records show Karasick’s entity flipped the Mesa

property for $32.5 million ($277.78 per foot) to 1550 West Southern LLC in Brooklyn (Marton Grossman, principal).

Grossman’s company acquired the asset with a $22 million loan from JP Morgan Chase Bank. Grossman is the owner

of a home furnishings business called Achim Importing Co. Inc. The Mesa property is believed to be Grossman’s first

investment in the Valley. Karasick is managing director of The 601 W Companies, a real estate investment

management firm. While Karasick’s company pocketed $2.5 million for its brief ownership of the back-office, Hsiung

did the heavy lifting for the two years he owned the asset. In August 2014, BREW reported PRI Mesa LLC paying $4.45

million ($31.47 per foot) to buy what was then a 141,400-square-foot vacant retail center. The three-building plaza,

which was once occupied by Circuit City, Toys R Us, and Bed Bath & Beyond, was redesigned and repositioned by

Hsiung’s company as Centrica. Find out more from Grossman at (718) 369-2200. Talk to Karasick at (212) 414-4603.

Max Hendriks of Phoenix Rising Investments is at (623) 279-9549. The JLL agents are at (602) 282-6300.

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