PHOENIX- Cole Real Estate Investment has acquired PetSmart Inc.’s 356,000-square-foot headquarters from Prudential Real Estate Investors for $102.5 million. The buy puts the local investment company on track to meet its 2011 acquisition goal of $3 billion.

Thomas W. Roberts, Cole’s executive vice president and head of real estate investments tells GlobeSt.com that the PetSmart headquarters at 19601 N. 27th Ave. was ideal for the company’s real estate portfolio because it involves a long-term, triple-net lease and a credit-worthy tenant. “This is a good, long-term core investment, consistent with our investment policy,” he comments.

The PetSmart headquarters is a build-to-suit that was constructed in phases, starting in 1997. Over the years, the facility was expanded. Roberts says Cole doesn’t anticipate any necessary capital improvements to the asset during the next few years.

The PetSmart deal brings Cole’s total real estate investment in 2011 to $1.5 billion. Though Roberts declined any specifics, he did indicate that more than $1.5 billion is currently in Cole’s acquisition pipeline, and should close by the end of the year. In 2010, Cole bought $2.5 billion in assets.

Though much of Cole’s investment involves free-standing retail and multitenant shopping centers, a portion of the company’s funds are dedicated to single-tenant office and industrial. Roberts says that Cole’s buying method involves cash up front, then financing after the fact. For the PetSmart buy, he says financing will be from a life company, with closing to take place within the next 45 to 50 days. The financing will carry a 50% loan-to-value. “We’re being conservative on that,” Roberts says. “We’re setting up financing that matches the lease term.”

Roberts is confident that Cole will reach its $3 billion acquisition goal because now is the right time to buy. “Generally speaking, we are still buying assets below replacement costs,” he explains. “It’s definitely a good time to find those assets with very attractive yields in today’s market.”

Boyd Messmann, Cole’s senior vice president, office and industrial acquisitions, represented the buyer in PetSmart transaction. Seller Prudential Real Estate Investors was represented by Barry Gabel and Mindy Korth of CB Richard Ellis in Phoenix and Kevin Shannon, Todd Tydlaska and Ken White of CB Richard Ellis in Torrance, CA.