"This was well-marketed and had a fairly short escrow," commentslisting broker Ari Spiro with Orion Investment Real EstateSolutions in Scottsdale, AZ. Spiro, who shared marketing dutieswith Orion colleague Sean Stutzman explains the lengthy marketingperiod for the asset at 1927 N. Gilbert Rd. represented the sign ofthe times more than anything else.


Though the asset was well-marketed and it did attract potentialbuyers, "it's been really difficult for sellers to know what priceto take, and buyers to know what price to pay in the absence of anycomps," Spiro tells GlobeSt.com. "Price discovery has been verydifficult." As a result, he goes on to say, the property attractedwhat he called "semi-committed offers." "The activity was there,"he adds, "but there wasn't really a strong commitment from anybuyer."


Southern California-based Hanhil Properties ended up with a96%-leased asset and an assumed loan carrying an interest rate ofaround 6%. Spiro points out that the in-place financing, which hadbeen regarded as a hindrance earlier in 2009 because it required50% down, became more appealing by the end of the year. "In thecurrent lending environment," he says, "that loan became veryattractive."


Hanhil, which was represented by Fred Fardoost of RealtyInvestments, plans to hold the asset long-term. "This was a soliddeal and below replacement cost," Spiro remarks. "This is one thatthey could feel confident that, if they were to lose a tenant,they'd be able to replace the rent because Pollack has kept rentshistorically low in the center."

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