PHOENIX-In its first acquisition of already developed product, Carlson Real Estate Co. of Minnetonka, MN, has bought a 193,366-sf, multi-tenant warehouse in the Deer Valley submarket from the Mack Co. in an off-market transaction for close to $19.1 million.

"This is a new program and new direction for Carlson. They have significant funds that are idle so they needed some place to invest them," says Bob Buckley, senior vice president in Phoenix for Trammell Crow Co. The new investment is a two-building complex at 21410 and 21415 N. 15th Lane.

Carlson is moving from the development realm, with which it is most familiar, into acquiring completed projects, with the idea of holding them for the long haul. "Carlson is notorious for long-term holds," Buckley tells GlobeSt.com. "Every once in awhile, they might look at a couple of projects that they'll turn around and put on the market short-term, but this isn't one of those times."

Buckley says Carlson is seeking additional assets in the area similar to the Mack-developed industrial complex. "We're pursuing some other assets, though don't have anything specific under contract," Buckley says, adding the buyer prefers large office/warehouses with a low finish and high occupancy rate. The TCC team includes Tracy Cartledge and Steve Lindley.

Mack, which delivered the Deer Valley project in 2004, had occupancy up to 100% at sale time. The roster includes Pilkington Glass Co., Sonoran Air Inc., Leslie's Poolmart Inc. and Trane.

"On that project, there is no lease roll for about four to five years," Buckley says. "It's a very stable asset. It fits in perfectly with what Carlson is trying to do and supports the funds they're trying to issue."