"Phoenix is one of the key markets that Capital Commercial Investments wanted to enter," says Paul Boyle of Grubb & Ellis/BRE Commercial LLC who represented the buyer along with partner Rick Danis. Dennis Desmond of Trammell Crow Co. represented the seller, International Capital Partners, a private investment group located in nearby Scottsdale that owns 18 properties, totaling 1.4 million sf of commercial real estate throughout the Valley.

The circa-1950s building, which is 100% leased to Honeywell, is located at 202 S. 27th St. near Sky Harbor International Airport. Not only has been refurbished, but Honeywell has made a significant investment in the building's infrastructure, Boyle says.

Boyle tells GlobeSt.com that Capital Commercial Investments came to Phoenix and decided to acquire the facility in off-market transaction. "They liked the location near the airport and the manufacturing use," he says. "It fit their acquisition criteria very well."

Honeywell, which uses the facility to manufacture defense and airline equipment, only has another 18 months on the lease. Nonetheless, Boyle contends the asset's price was "very competitive." After four months in escrow, the buyer paid for the asset in cashand plans to put new financing on the asset in the near future, he says. Capital Commercial Investments, which invests in single-tenant industrial assets across the Southwest, is looking for additional net-lease assets in the Valley.