The warehouse was exclusively occupied by Sportsman's Warehouse until the company filed for bankruptcy protection last year. Since emerging from bankruptcy, the tenant has cut its occupancy at the West Jordan property by half, and the new owners have leased the remaining half of the warehouse to Integracore, a logistics firm.

The sale became complicated when the Utah Department of Transportation condemned a portion of the complex including several bunker type structures that were related to the Sportsman's Warehouse use of the property (which had to be replaced by new adjacent parcels purchased as part of the transaction). The transaction also included assumption of the existing CMBS financing.

According to Jaffe, the disposition strengthens BH Properties' capital base, positioning the company to act quickly to buy retail and industrial properties throughout the Southwest and other markets. "Our cash reserves allow BH Properties to be nimble at launching operations in newly promising markets," Jaffe says. In recent years, costs in Southern California had risen to a point where promising returns on investments were uncertain, he says. Now, however, the firm sees superior investment possibilities in markets like Southern California, he says.

BH Properties was represented by Bryce Blanchard of NAI Utah in the warehouse sale.  Zach Anderson of NAI Utah represented KPFN Properties LLC, led by principals Ted Broman and Randy Abood.