Why Goodwill Makes Such a Good Tenant

Having a thrift shop as an anchor is no longer a negative with investors. Especially if that retailer is Goodwill Donations Xpress. CBRE's Steve Julius just sold Shops at Dynamite & Tatum, a nearly 10k SF strip center in Cave Creek to Canadian investors who paid nearly $2M, or $218/SF. Not bad, given the average price in Arizona for much larger stabilized shopping centers is around $220/SF, Steve says. “It is a pretty well-respected tenant here in Phoenix now."

Steve says the buyer of Shops at Dynamite & Tatum (here) is investing for the cash flow. And that kind of product is what many out-of-state investors are seeking here lately, especially as Phoenix really takes off from the economic doldrums that plagued the metro area for years. There has been a noticeable influx of investors from California, Steve says, as they chase higher cap rates and more value for the money.

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