PHOENIX-In their first acquisition in the area, two Southern California brothers, operating under the name Laubro No. 1, LLC, have acquired three industrial buildings owned by locally based Allied Tool and Die Properties, LP for $3.6 million.

The deal was structured as a sale-leaseback for Allied, which has signed a 10-year lease for the three-building, 35,594-sf property located at 3801-3807 S. 7th St. The lease rate is $8.29 per sf, annually. "This was a 1031 purchaser, and the deal brought a cash infusion to the company [Allied]," comments Beth Jo Zeitzer, president and designated broker with R.O.I Properties in Phoenix. Zeitzer, who represented Allied, tells GlobeSt.com that the property was initially listed at $3.5 million.

"We created some value along the way," she explains. "Plus there's definitely a shortage of this type of property on the market, particularly those that meet 1031 requirements."

The buyers, represented by Stan Tomer of CB Richard Ellis Group, Inc.'s San Diego office, are no strangers to the metro area, Zeitzer continues. "They've done some valuation and real estate work here, but haven't had holdings in the Phoenix area until now," she says.