Phoenix Metro Properties LLC made the offer that took the 6232 N. 7th St., two-story office building off the hands of Gong-Holland Investments LLC in a move that turned out to be a sweet deal for both parties.
"The buyer was in a 1031 Exchange and owned property in Reno, but wanted to branch out in Phoenix," Eric Wichterman, with Grubb & Ellis Co.'s investment division, tells GlobeSt.com. Tropic Gardens, with a $75 per sf cost and a 10% cap, was the perfect exchange, he said. For the seller, the deal meant an opportunity to divest of a building that had become a burden to manage.
Built in 1984 and situated between Bethany Home and Maryland roads, the office property is well located for small business owners, who occupy it at a full-service lease rate that averages $14.35 per sf, Wichterman noted. But with no long-term leases in hand, it had its drawbacks. Still, said Wichterman, "It is very quaint, very attractive and well located and it will do very well," despite some minor obstacles, he said.
Wichterman, along with Stan Shafer, also in Grubb & Ellis' Phoenix office, represented the buyer in the transaction. The seller was represented by Gene Menchik with John Hall & Associates.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
