The warehouse was exclusively occupied by Sportsman's Warehouseuntil the company filed for bankruptcy protection last year. Sinceemerging from bankruptcy, the tenant has cut its occupancy at theWest Jordan property by half, and the new owners have leased theremaining half of the warehouse to Integracore, a logisticsfirm.

The sale became complicated when the Utah Department ofTransportation condemned a portion of the complex including severalbunker type structures that were related to the Sportsman'sWarehouse use of the property (which had to be replaced by newadjacent parcels purchased as part of the transaction). Thetransaction also included assumption of the existing CMBSfinancing.

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