SIERRA VISTA, AZ-A single-tenant retail building with a complicated ground lease has sold for $1.7 million after six months on the market. Berco, an investment group from Tarzana, CA, was one of four offers for the 29,279-sf building in the Center of Sierra Vista Shopping Center.
The building, located at 3758 E. Fry Blvd., is fully occupied by Hastings Entertainment. "The Hastings store expanded a few years ago and took on 10,000 sf of space that was a ground lease," says Andrew Fosberg, a Phoenix associate with CB Richard Ellis Inc. "The buyer purchased the building and assumed the ground lease." The property finally traded at a 9.59% cap rate, he says, citing an average rent of $6 per sf, triple net.
Hastings' space adjoins Pier 1 Imports and Ace Hardware. The book and music retailer's lease expires in 2009, a drawing card for four offers, Fosberg tells GlobeSt.com.
Fosberg teamed with Steve Fernandez, Jenifer Lunt and Claudia Jara to represent the seller, Sierra Vista Two LLC of Scottsdale. Bob Broyles of Colliers International's Phoenix office handled negotiations for the buyer.
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