GoDaddy founder buys Westgate for $133M

By: 
DARRELL JACKSON, Staff Writer

Photo by TacC Photography
Westgate Entertainment District was placed on the market in April and the sale closed June 12.

After multiple foreclosures over the years, Westgate has a new owner.
The founder of GoDaddy and owner of YAM Properties, Bob Parsons, bought the 76-acre property for $133 million, $9 million less than anticipated when the property was put on the market in April.
“The potential at Westgate is huge,” Parsons said in a written statement. “Westgate currently offers visitors a wide variety of entertainment options, but we’re looking to develop features that will entice even more visitors and residents to this unique and vibrant Valley location.”
Since 2012, former Westgate owner iStar has added more than 50 retail and office leases totaling in excess of 260,000 square feet, converted two floors of vacant office space into 76 luxury loft-style residential units, and brought to the district multiple new entertainment opportunities. iStar has also partnered with Tanger Factory Outlet Centers Inc. to build the successful 400,000-square-foot Tanger Outlets Westgate, which iStar subsequently sold in 2016.
“Westgate’s revitalization required iStar’s full suite of real estate expertise and problem-solving capabilities,” said David Sotolov, iStar executive vice president. “With nearly $500 million of additional investments in the Southwest, we remain active lenders, investors and partners to the most sophisticated real estate investors in the region.”
The sale happened rather quickly, according to YAM Properties Vice President of Communications Curtis Steinhoff.
“The property was placed on the market in April, and we closed on June 12,” Steinhoff said.”
The entertainment complex is located near Loop 101 and Glendale Avenue and is home to several restaurants and bars such as Dave & Buster’s, Tavern + Bowl, an AMC Theatre, office and hotels.
The deal also includes 33 acres of undeveloped property.
“Projects under consideration for the 33 acres of undeveloped property include a boutique hotel, additional multifamily residential, office and specialty entertainment retail space,” Steinhoff said. “We have no announcements on additional activity at this time on when expansion will begin.”
YAM Properties will manage Westgate but expects to work closely with AEG, the management company that runs nearby Gila River Arena.
“YAM Properties will manage Westgate, as it does all the properties in its portfolio,” Steinhoff said. “We will work closely with AEG to promote and enhance the visitor experience.”
Asked if Parsons or YAM Properties was interested in purchasing Gila River Arena from the city of Glendale, Steinhoff said, “We have had no discussion regarding the purchase of Gila River Arena. We have no current interest in purchasing (the Arena).”
The 76-acre property includes 553,000 square feet of dynamic retail, office and residential space and 33 acres of fully entitled land.
“Westgate’s sale marks the end of a highly successful business plan that would not have been possible without the work of our Phoenix-based partners, Teetsel Properties and Vestar,” Steinhoff said. “We are thrilled to now turn over this fantastic asset to the visionary Bob Parsons and his team at YAM, while we continue to expand our core real estate finance and investment businesses.”

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