C&M Family Investment LLC, which purchased the single tenant property for $2.4 million from Kingman Interstate LLC, bought the building at 4400 Interstate Way, but not the land underneath. The acreage is owned by the building's tenant, Interstate West, a leading manufacturer of cargo trailers, which also holds a 15-year lease for the building.
"It was an unique situation," Rick Danis with Grubb & Ellis|BRE Commercial's Phoenix office, tells GlobeSt.com. "The property itself sits on a ground lease, which is owned by the tenant of the building."
Despite the unusual circumstances, Danis says the buyer was able to understand the complexities of the sale and realize the property's high yield in a market where cap rates most often are 6% to 8%. "They took the time to understand that this is a pretty solid investment in terms of what else is out there," he says. "It's a long-term, single-tenant investment deal that provides a real good yield to the buyer in a market where there is not a lot of opportunities to make a decent yield. It's also an indication that there is such a slim amount of product out there, buyers are forced to be a little more creative and a little more open to unique situations like this to get a better yield." Danis partnered with Paul Boyle and Tony Lydon, also with Grubb & Ellis/BRE Commercial, to represent the local buyer and local seller.
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