Transaction marks one of the largest retail real estate trades in Arizona history
iStar (NYSE: STAR) announced today it has completed the repositioning and sale of the Westgate Entertainment District, Arizona’s premier sports and entertainment destination, to YAM Properties LLC for $133 million.
The transaction is the culmination of iStar’s long-term vision to transform a struggling retail center in the Phoenix metropolitan area surrounded by 70-plus acres of undeveloped land and empty parking lots into one of the most successful mixed-use entertainment destinations in the Southwest region.
Since 2012, iStar has executed over 50 retail and office leases totaling in excess of 260,000 square feet, converted two floors of vacant office space into 76 luxury loft-style residential units, and brought to the district multiple new entertainment options including Dave & Busters and Tavern+Bowl. Additionally, iStar partnered with Tanger Factory Outlet Centers, Inc. to build the successful 400,000 square foot Tanger Outlets Westgate, in which iStar subsequently sold its interest in 2016.
“Westgate’s revitalization required iStar’s full suite of real estate expertise and problem-solving capabilities,” said David Sotolov, iStar Executive Vice President. “With nearly $500 million of additional investments in the Southwest, we remain active lenders, investors and partners to the most sophisticated real estate investors in the region.
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“Westgate’s sale marks the end of a highly successful business plan that would not have been possible without the work of our Phoenix-based partners, Teetsel Properties and Vestar. We are thrilled to now turn over this fantastic asset to the visionary Bob Parsons and his team at YAM Properties, while we continue to expand our core real estate finance and investment businesses.”
The 76-acre property includes 553,000 square feet of dynamic retail, office and residential space and 33 acres of fully entitled land.
“The Westgate development began as a catalyst project to create a unique destination in the West Valley and it has been transformed into an exciting sports and entertainment district with amenities for all ages,” said Glendale Mayor Jerry Weiers.
iStar (NYSE: STAR) finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust (“REIT”), with a diversified portfolio focused on larger assets located in major metropolitan markets. Additional information on iStar is available on its website at www.istar.com.