The seller was Mountain West Industrial Properties of GreenwoodVillage, CO, which completed the project last year at 7375 W.Buckeye Rd. and had leased 93% of it by the time it went on themarket. The anchor tenant is Pilkington North AmericaInc., a vehicle and building glass company founded in 1826that occupies 203,245 sf. Consisting of three buildings of 71,288sf, 152,800 sf and 234,848 sf, the property is Lincoln's secondacquisition from Mountain West.

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"With a 93% occupancy rate, we feel this is a very attractivestabilized investment for Lincoln," says David Krumwiede, executivevice president of Lincoln's Western Region. "Acquisitions like thiscomplement our development activities in which we delivered overone million sf of product in the second quarter."

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The asset will be managed by Lincoln's property managementdivision and leased by Bo Mills and Mark Detmer of Cushman &Wakefield of Arizona Inc., who also brokered the sales transactionon behalf of both parties. According to Mills, the propertyreceived about 10 offers.

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Although it went out without an ask, Mills says the winning bidwas within the range the seller had targeted. "It was relativelycompetitive," he says. "This was one of the best industrialproperties to be bought to market in some time. It's newconstruction, well leased, functional, quality product and welllocated. It has it all."

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At the same time, Mills acknowledges the asset did not bring asmuch as it would have 12 months earlier. "Cap rates have movedabout 50 basis points from where they were a year ago for thisparticular property," he says. "But the seller felt like they madea good sale and the buyer felt like they had got a good price."

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According to Krumwiede, the two firms' past relationship andLincoln's known ability to close were as important as price inwinning the deal. He tells GlobeSt.com the company is in discussionwith tenants to fill the two remaining spaces and expects to havedeals nailed down shortly.

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Mills is quoting 50 cents per sf per year, triple net, for theremaining space, with $10 per sf in tenant improvements. The rate,he adds, is in line with other class A product in southwestPhoenix.

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Lincoln's regional team in Phoenix has developed more than 2.9million sf of commercial and residential properties, acquired 2.7million sf and manages over 4.8 million sf of commercial space.Mountain West owns three other completed industrial projects in thePhoenix area and is developing the 146-acre 303 Phoenix project inGoodyear, AZ.

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