"It was a good investment opportunity, rare on Scottsdale Road and a chance to get something in the Kierland community," David Guido of Marcus & Millichap's Phoenix office says of the sale, one of the largest single-tenant deals made this year.

The Dobson Family Trust, a 1031 Exchange buyer, beat out at least a dozen other bidders to take title to the 15826 N. Scottsdale Rd. store, including at least one other offer that was closer to the seller's $8-million asking price, Guido tells GlobeSt.com. Seller PAD Land LLC of Phoenix, developer of the North Scottsdale property, selected the trust because of its good relationship with the lender and its exchange status, which gave it an incentive to close the deal, he says.

A shortage of single-tenant properties and a location in an affluent area of Scottsdale fueled buyer interest in the offering, Guido explains. "The single-tenant market continues to be one of the hottest markets," he adds. "Investors are all going for the retail single net or triple net properties because it's less management intensive and they're willing to pay higher prices for a conservative return."

The building is jointly occupied as a single store by Bassett Furniture and the Room Store, which took a 15-year leaseback on the property. Guido would not reveal the terms of the leaseback agreement, but did say Kierland properties generally rent for $20 per sf to $30 per sf.

Guido and Mike Bennan of Oakmark Properties, represented the seller in the transaction. The buyer's in-house representative, Mike Brown, handled its side of the talks.