Nelson Brothers Real Estate Purchases Multi-Tenant Retail Center in Arizona for Tenant-In-Common (TIC) Investors

July 18, 2008 8:17 PM EDT

ALISO VIEJO, Calif. and GOODYEAR, Ariz., July 18 /PRNewswire/ -- Nelson Brothers Professional Real Estate, LLC (Nelson Bros.), a Southern California based real estate investment company, has officially closed on their first TIC transaction with Palm Valley La Piazza Retail Center which was purchased for $6,800,000 according to the firm's principal and co-founder Patrick Nelson.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080718/LAF018)

The 30,500 square foot property on 4.88 acres located in Goodyear, Ariz., was built in 2004 and went under contract in August 2007. It is currently 100% occupied by 13 tenants on a NNN lease. Located in the heart of the retail corridor within the high growth area of West Phoenix, the current rents are 40-50% below the neighboring retail and office comparables. Nelson sees this as a competitive advantage to local retailers given the slower economy and has mentioned that there have been inquires from other prospective tenants who may be interested in leasing space at the property. "The tenants are on a staggered rent roll which provides an exceptional opportunity to maintain stable income, increase rents and diversify the tenant mix as the current leases rollover. We have over 100 extra parking spaces which further adds to the tenants we can attract. We will be working closely with Nobeus Property Management and foresee some great upside and price advantages in this market."

According to an article in the July issue of Forbes magazine, Goodyear and its surrounding area is the 4th fastest growing suburb in the U.S. and has experienced a 143% population growth since 2000 with 41,000 new residents expected within a 5-mile radius by 2012. Nelson mentioned there is another mall under development for 1.3 million square feet that will be located down the street from the center with big wave retailers which will improve the market value even further.

The initial financing was provided through Suncor Development Company which, as the developer and lender for the property, did a carry back loan for the remaining equity for up to 24 months. Nelson notes that they were able to close the offering in a timely manner for their investors as a result of working closely with the company, even under the constraints of a financially challenged real estate market. "We worked hard with our lender and appreciate the close relationship we have established with them. It's exciting for us to know that we can build strong relationships with such a respected company as Suncor."

Nelson Bros. launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of office, retail and multi-family properties for TIC investments throughout the West and Southwestern United States. The TIC investment, as part of a 1031 exchange process, has gained popularity over the years with property owners seeking passive management while deferring capital gains taxes on the sale of their investment property. The firm, owned by brothers Patrick and Brian Nelson, is planning to syndicate eight to 12 properties for 2008.

     For more information contact:
     Patrick Nelson, Principal and Co-Founder
     (949) 916-7300, ext 201
     http://www.1031MBD.com
     or
     Janet O'Connor
     (888) 262-8988

SOURCE Nelson Brothers Real Estate, LLC

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