The holding, developed by First Industrial, was built two years at ago at 4645 and 4655 W. McDowell Rd. It was 88% occupied at sale time, Dan Calihan of the Phoenix office of CB Richard Ellis Inc. tells GlobeSt.com. The tenant roster includes Kone, Sherwin Williams and DashMat. Calihan says the property was a 1031 exchange, but did not know what the buyer gave up for the exchange.
Calihan says the property was never really on the market. The buyer put an offer on the table before the property was listed. Thus, the bargaining table talks reaped close to the asking price at the onset of negotiations.
Calihan represented the seller along with CB Richard Ellis' Joe Porter and Pat Feeney. Bob Buckley of Insignia/ESG's Phoenix office brokered the deal for the buyer.
Calihan points out that the McDowell Road project was a successful undertaking for First Industrial. Despite a waning economy, the building achieved an 88% occupancy in a very tight market. This, he says, shows a well-designed building in the right location can lease up even in the toughest of conditions.
The West Phoenix submarket has a 25 million-sf inventory with a 7% overall vacancy rate. In the first quarter, deals absorbed 280,164 sf. The average weighted net rent for the submarket is 39 cents per sf. The area currently has no product under construction.
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