According to Richard Danis, a senior vice president with Grubb& Ellis/BRE Commercial in Phoenix, the sublease was not afactor in the decision to sell. Danis is marketing the propertywith Paul Boyle and Anthony Lydon, also senior vice presidents inthe Phoenix office. The building is fully leased to three tenantswhose lease expiration terms range from 2011 to 2013, and Danissays the building would have made an attractive investmentopportunity even if Cascades Tissue had not found a subtenant forits excess space.

"It's the preeminent distribution facility in the Mojave Countyarea," says Danis. "The air park it's located in has limitedvacancy. For large-space users, it's the only game in town." Hecalls Kingman the equal of Phoenix, Las Vegas and California'sInland Empire in terms of distribution potential, providing easyaccess to 30 million people. Because of that, he says the propertyshould prove attractive to a wide range of buyers from privatecapital to institutional investors. "We've got quite a bit ofinterest already," he reports. "Based on how much early positiveresponse we've seen, we expect it won't take that long to identifythe best player."

Explaining the reason for the sale, Big Industrial managingdirector Todd Mendon says the company has owned the property forseven or eight years and determined it had fulfilled its investmentgoal. "We think there are some new opportunities out there we'dlike to take advantage of. It's performed well for us, and themarket seems right for selling," he remarks.