New joint ownership venture formed for Pavilions shopping center on tribal land

Article originally posted on on January 21, 2016

Phoenix-based De Rito Partners and Los Angeles-based PCCP LLC have formed a new real estate joint partnership to own The Pavilions at Talking Stick Shopping Center.

De Rito bought the 1.2 million-square-foot retail development in 2008. It is located at Indian Bend Road and Loop 101 just east of Scottsdale on the Salt River Pima Maricopa Indian Community.

Now, Marty De Rito’s firm has a new ownership partner in PCCP. Financial terms were not disclosedDe Rito Partners will continue to manage and handle leasing at the retail center which includes Target, Home Depot, Sports Authority, Ross Dress for Less, Hobby Lobby and Burlington Coat Factory. The Pavilions were first buit in 1989 and 1991. De Rito put a $21 million upgrade into the development.

“PCCP sees this as a strategic opportunity to own a large, well-located power center that has a strong tenancy but also provides opportunities to add value,” said PCCP Vice President Mike Johnson in a statement. “We are excited to continue our partnership with De Rito Partners and execute the business plan moving forward.”

Holliday Fenoglio Fowler LP helped bring PCCP and De Rito together and arranged a new loan from Wells Fargo Bank.

The 142-acre development still has some undeveloped parcels and is next to the spring training ballpark shared by the Arizona Diamondbacks and Colorado Rockies.

The HFF team was led by executive managing director John Pelusi, senior managing director Kevin MacKenzie and managing director James Fowler.