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$145M Phoenix Retail Project Moves Forward

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The development is part of a 600-acre master-planned campus. The post $145M Phoenix Retail Project Moves Forward appeared first on Commercial Property Executive.

Rendering of Phase I of Signature at SanTan Village — Signature at SanTan Village is part of a nearly 600-acre master-planned campus. *Image courtesy of Kensington*

Kensington Development Partners and IM Properties have acquired the development site for the first phase of Signature at SanTan Village, a 300,000-square-foot retail project in Gilbert, Ariz. Phase One construction is set to begin immediately.

The joint venture is developing the $145 million project in partnership with state landowners and SanTan Development Group. The future retail center has already secured anchor tenants such as Whole Foods Market and DICK’S Sporting Goods’ House of Sport.

Other potential tenants include Crate & Barrel, Chewy, Starbucks, Fogo de Chao and Fidelity. Western Retail Advisors and Phoenix Commercial Advisors will support the ongoing leasing activity.

Phase One will feature a 43,000-square-foot Whole Foods Market, a 119,397-square-foot House of Sport by DICK’S Sporting Goods and three stand-alone pads.

The development will take shape on 30 acres at the intersection of Santan Village Parkway and Williams Field Road near the 1.2 million-square-foot SanTan Village lifestyle center. When complete, the property will serve approximately 53,900 individuals within a 5-mile radius, with an average household income of $120,891, according to Kensington.

Part of a massive development

Phase I of Signature at SanTan Village will be followed by a 115,000-square-foot Phase II. *Image courtesy of Kensington*

Signature at SanTan Village is part of a nearly 600-acre mixed-use campus. At full build-out, that master-planned property will encompass 3 million square feet of retail and entertainment venues, office spaces, residential units and hospitality services. Adopting recent retail trends, the project aims to create a community hub that caters to a wide range of needs and preferences.

Phase Two will expand the development by approximately 115,000 square feet. It’s set to include a variety of shopping and dining establishments, including stand-alone buildings and spaces for junior anchor tenants.

The Phoenix retail sector has remained somewhat resilient, with more than 1 million square feet under construction in the fourth quarter of last year, according to a recent CBRE report. New deliveries totaled 182,211 square feet, while only 17,321 square feet broke ground in Q4.

Meanwhile, the vacancy rated clocked in at 5.7 percent, up 20 basis points over the quarter. The average asking rent reached $18.25 pet square foot, marking a 2.6 percent rise from Q3.

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