The 20-year leaseback closed within 120 days of coming to market, Ray Fontaine of Marcus & Millichap's Phoenix office, tells GlobeSt.com. Fontaine represented the buyer, Dr. Patrick Bitter of Los Gatos, CA in his first Arizona acquisition at 1740 W. Broadway Rd. Marcus & Millichap's Brian Hanson of the Sacramento office handled talks for the seller, the Leonesio Family LLC of Phoenix.
The 29,354-sf building, formerly a PetsMart store, was redone in 1991 by the Leonesio family, owner of the two-year-old bottled water operation, O Premium. The corporate office-showroom fronts the high-traffic Broadway Road and boasts traffic-signal controlled access. The primary selling point, says Fontaine, is there's room for expansion since the building only covers 22% of the 2.7-acre tract. He says there are no plans in the near term to build out the site, which also could accommodate retail development. As for the buy itself, Fontaine says "I think we got a premium cap rate due to the nature and use of the property."
Fontaine says the sale-leaseback sets the stage for an O Premium expansion. In addition to seeking more Arizona trade, the firm has its eyes on markets in California and Las Vegas.
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