THE CHANDLER ARIZONAN | WWW.CHANDLERNEWS.COM | JANUARY 23, 2022
33 BUSINESS
Chandler strip mall king sells 5 shopping centers BY KEN SAIN Arizonan Staff Writer
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ommercial real estate baron Michael Pollack is reaping the benefits of one of the best markets in 15 years. His company, Michael A. Pollack Real Estate Investments, sold five of his Valley shopping centers for more than $32 million. “It has been very good for us for the last three years,” said Pollack, who is one of the largest commercial real estate owners in Chandler. “Anyone who wants to sell right now, it’s a sellers market, just like it is for anyone looking to sell a home.” Pollack sold retail centers in Mesa, Peoria, Phoenix and Tempe. He said they worked hard to wrap up all five transactions before 2021 ended
Michael Pollack, seen here in his recently renovated Pollack Tempe Cinemas, sold five of his shopping centers last year. (David Minton/Staff Photographer)
because he is uncertain what the federal government might do this year with the capital gains tax rate. “Hopefully, the federal government doesn’t do something irrational,” he said. Pollack said he’s been working for more than a decade to make sure his retail centers continue to thrive in a changing marketplace. He called them “Amazon-resistant,” saying they have focused on businesses that offer experiences or services. “You can’t get a haircut at Amazon,” he said. Pollack said they will look to buy more retail centers but, considering how hot the market is right now, they might wait. “It’s a little too hot to be a buyer,” he said. “We would love to put capital out right now, but we’re also realists. It’s a
see POLLACK page 34
Developer sues Chandler over garage rent default BY KEN SAIN Arizonan Staff Writer
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n a dispute that could cost taxpayers millions of dollars, the City of Chandler is being sued for failing to pay its rent of the parking garage at the Overstreet development at Arizona Avenue and Chandler Boulevard. Developer DT Chandler’s lawyers filed the lawsuit in Maricopa County Superior Court in mid-October and City Council went into executive session on Monday to discuss how to deal with it. At the heart of the dispute is DT Chandler’s claim that the city did not exercise its option to buy the parking garage correctly. It says that option is now gone, and the city must pay rent as part of their lease agreement. The city wants to buy the garage for about $8.7 million. If the court sides with DT Chandler, then it would have to pay a little more than $65,000 a month
The parking garage at the Overstreet development in downtown Chandler is the subject of a lawsuit filed against the city. (File photo) in rent for the next 27 years – about $21.1 million over the life of the lease, DT Chandler claims. Under the terms of the lease, the city paid $26,250 a month
for the first three years. The rent increases starting the fourth year. According to the lawsuit, the city had to notify DT Chandler it planned to exer-
cise its option to purchase the garage for $8,690,351 in writing at least 30 days before the third year ended. DT Chandler said it was not notified until it received a letter on Aug. 27. It claims the city did not state it was exercising the option and that the letter was not sent to the escrow holder. It also claims the city did not provide the required $150,000 deposit to the escrow holder. And it claims that written notice of the city’s intent to exercise the option was due on or before Aug. 12, since the lease began on Sept. 11, 2018. DT Chandler argues the city failed to give the required notice, or take the required steps toward actually purchasing the garage, and therefore must pay the higher rent for the rest of the lease agreement, which was for 30 years. But the city not only has denied the
see GARAGE page 34
