Prairie Hill adds Tucson center to its portfolio
Real estate firm Prairie Hill Holdings has added a new Sun Belt property to its portfolio.
The company has acquired Rillito Crossing Marketplace, a 96,424-sq.-ft. shopping center in Tucson.anchored by a Sprouts Farmers Market. Other tenants at the center include LA Fitness, The Joint Chiropractic, multiple nail salons and several quick-serve restaurants.
"Retail property fundamentals are fantastic, with historically low vacancy, and above-trend rental growth,” said Matthew Sandretto, chief investment officer at Prairie Hill Holdings. “Bearish sentiment in commercial real estate throughout 2023 put most buyers on the sidelines. This sentiment isn't justified in retail, yet it reduced competition considerably and enabled us to have our choice on the very best opportunities nationally."
Prairie Hill says it will continue development at Rillito Crossing. The shopping center contains an undeveloped parcel adjacent to LA Fitness that is buildable up to 25,000 sq. ft., as well as a parcel at the entrance suitable for a quick-serve restaurant drive-through.
Prairie Hill’s commercial portfolio includes shopping centers in Dubuque, Iowa, and Appleton and Sturgeon Bay, Wis. The Rillito Crossing acquisition gives the company a new property in the fast-growing Sun Belt region. Arizona’s population is expected to continue growing, reaching 7.6 million residents this year.
Prairie Hill is taking on more capital for its acquisition campaign in 2024, with another $50 million-plus of acquisitions planned in retail and industrial.