The two-story building, sold by Spokane, WA-based Crown West Realty LLC, is fully leased to EaglePicher until 2016. The company moved into the building at 3402 E. University Dr. in Southbank Office Park, in early 2004.

"This is strictly a cash-flow investment with annual increases in rent," says Bob Young, a first vice president with CB Richard Ellis Inc. who represented Crown West in the transaction. Steven Brabant, Glenn Smigiel, Rick Abraham and Joe Porter of CBRE's Phoenix office also were involved in the deal.

Young tells GlobeSt.com that EaglePicher is gradually taking over the 103,667 sf and won't start paying rent for the whole building until 2007. "Crown West covered the shortfall in rent for 2005 and 2006 so the buyer was getting a full return from day one," he explains, adding Crown West has guaranteed $790,000 in rent.

According to Young, the six-year-old building received a dozen offers before going under contract to San Diego-based Falcon Real Estate, which bought the property on behalf of Mexican investors. "Investors liked the long-term lease and the quality of the real estate--it's a beautiful building," Young says. He adds Crown West received an unsolicited offer for the property, but the buyer ended up backing out on the transaction. Once the property was listed, it garnered about $1.1 million more than the unsolicited offer.

Crown West purchased the building out of foreclosure in January 2003 for $10 million from Citizens Bank in Detroit. The building formerly was owned and occupied by now-defunct Motion Systems. It was developed by Phoenix-based Douglas Allred Co.