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3:03 AM Sun, Sept. 23rd

Cole Real Estate buys Shops at Gateway

Les Stukenberg/The Daily Courier<br /><br /><!-- 1upcrlf2 -->

Les Stukenberg/The Daily Courier<br /><br /><!-- 1upcrlf2 -->

PRESCOTT - RED Development Co. of Phoenix has sold the Shops at Gateway to Cole Real Estate Investments Inc., also of Phoenix, for about $12.8 million, Cassidy Turley announced in a news release.

"The Shops at Gateway received tremendous interest from the market as RED Development built another irreplaceable destination asset," Ryan Schubert, a broker with Cassidy Turley in Phoenix who helped to represent RED, said in a statement. "The property received over a dozen offers."

Cole declined to comment because it is a publicly traded company that has not filed any paperwork yet with the U.S. Securities and Exchange Commission, an employee stated.

Robyn Young, president of marketing and communications at RED, was unavailable for comment Thursday.

The sale came within two weeks after the City of Prescott announced RED opted to pay off its lease/purchase agreement with the city about 18 months early. Mark Woodfill, Prescott's budget and finance director, told the Courier the city received a check from RED exceeding $2 million to pay off the city's costs.

City officials in 2011 bought 7.1 acres at the corner of Highway 69 and Lee Boulevard and leased it back to RED to lure a Trader Joe's to open at the retail center. Trader Joe's opened in spring 2012, and Five Guys, Mattress Firm, Cuppers and other businesses followed.

The 34,671-square-foot center is adjacent to the Prescott Gateway Mall. The center was 93 percent occupied at the time of the sale, the news release stated.