Sun Bell Plaza – Gateway Properties

Bell Road in west Phoenix is one of the area’s busiest corridors. It connects traffic from the metro market and the 101 Loop to the vast retirement Mecca of Sun City, Sun City West and Sun City Grand, Arizona.

When Max Taylor and Company, LLC entered the market with its acquisition of Sun Bell Plaza, Bell Road was two lanes.

Sun Bell Plaza was the premiere gateway to Del Webb’s Sun City and there were few retail strip centers along the corridor, much less the now famed Arrowhead Mall with its renown mash-up of surrounding retail properties that make Bell Road a magnet for shoppers, Spring baseball and concert enthusiasts.

Sun Bell Plaza

Sun Bell Plaza, located at 94th Avenue and West Bell Road in Sun City, Arizona is an example of what I call a “Gateway Retail Center” as it straddles both sides of the main corridor (north and south) at the very entrance to Del Webb’s Sun City retirement community.
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Facing a New Commercial Reality

slice-leftWhen I am asked, “What do you think my commercial property is worth?” I cringe and feel less than completely at ease with the answers I know honesty demands.

It is not that I am reluctant to be completely transparent with a client. That is the easy part. The difficulty lies in communicating to commercial property investors that they may be facing a new commercial reality.

Our new commercial reality contains several characteristics that make buying and selling, leasing and landlording and other forms of investment more precarious than perhaps in times past.

Heads I Win Tails You Lose

Commercial real estate values are tipping and for some investors it doesn’t matter what side of the coin comes up.

In a majority of major commercial markets commercial property is softening and for those who purchased in 2005-2007, things may be less than stellar. This is also true of commercial real estate markets like Prescott, Arizona.

Owners who purchased in the 2005-07 framework invested at the top of the market…they bought high.
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