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SURPRISE, AZ-A San Diego developer has sold a net-leased, 6,327-sf retail building for $1.82 million to a Santa Clara, CA couple. The deal's sweet spot is Advanced Auto Service & Tire Center has 16 years to go on its lease.

Buyers Tai and Phuong Nguyen will pick up $115,000 in annual rent from the tenant at 14076 W. Grand Ave., according to Jamie Medress, a Phoenix associate with Marcus & Millichap Real Estate Investment Brokerage Co. The property, listed at $1.84 million, was marketed for three weeks by Medress and Marcus associate Steve Gonzalez. "The buyers got the deal because they were clearly interested," Medress tells GlobeSt.com. "They'd sold something in California and were using the exchange money to invest."

Steve M. Grady of Goodyear Surprise Group LLC of San Diego developed the property two years ago with the intent to sell. "He typically sells everything he builds. He does a lot of these build-to-suits in the southwest," says Medress, who teamed with Marcus & Millichap associate Steve Gonzalez to work the deal.

The buyer obtained a 25-year loan at a 7.12% fixed-rate interest through Union Bank of California, headquartered in San Francisco. Patricia Anderson with ZipRealty Inc. in Phoenix represented the buyers.

Medress says the building is in "pristine condition," which is one reason it attracted six offers. The major selling point, however, was the location. "It's in Surprise, which is a huge growth market. It's an attractive location right on Grand Avenue," he says, "plus this property was ahead of its projection as far as sales volume."

Instant Insights /

16-Year Lease, Location Drive $2M Retail Sale

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