"We closed at a 9% cap, which is a very aggressive cap for theaters," John Wise, senior director of the national office and industrial properties group at Marcus & Millichap in Atlanta, tells GlobeSt.com. "Most are usually around a 10 or 11. We were able toachieve that because of the great location of the property."

Scottsdale-based Spirit Finance Corp. emerged from a dozen offers as the winning buyer, adds Wise, based on the investor's local reputation and ability to close with all cash. "They were local and that was an important factor because they really understood that this is a tremendous location," Wise says of the seven-year-old theater property.

TMW Real Estate Group LLC of Atlanta, a subsidiary of Prudential Real Estate Investors of Parsippany, NJ, listed the property through Wise last fall, lowering its asking price in January. Marketing lasted approximately three months from the new ask. TMW owned the theater for five years.

Located at 2515 E. Camelback Rd., AMC 14 features 51,600 sf of stadium-style seating in 14 auditoriums, plus a three-story underground parking deck. The second largest theater chain in the country, Kansas City, MO-based AMC Entertainment Inc. recently garnered a B corporate rating with a positive outlook from Standard & Poor's.

The Esplanade is one of Phoenix's premier office/retail destinations, with 469,000 sf of office space set in two 11-story buildings as well as 53,000 sf of restaurants. Wise negotiated the deal on behalf of the seller. David Guido of Marcus & Millichap's Phoenix office represented the buyer.

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Theater Property Trades for $13M

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