"They just jumped on it," Doug Fielding with Marcus & Millichap's Phoenix office tells GlobeSt.com of the group's $3.3-million buy. "They were going to be in an exchange and this fit their need perfectly."
Closing on the property was stalled since June while the buyer finalized plans to unload a Long Beach apartment complex that was part of the 1031 Exchange deal, Fielding says. Seller Coconut Grove Properties LLC of Mesa originally asked $3.4 million for the plaza, located at the northeast corner of Lindsey Road and University Avenue, but settled for $100,000 below the asking price in order to avert a long-term listing on the property, he says. "The seller was open to just selling it and moving up," he says of the long-delayed closing that was just recently finalized.
The single-story plaza is fully leased to a variety of small businesses, including a dental office, dance studio, bakery, insurance firm, bookstore and hair salon, with rents averaging about $11 per sf. Almost all of those leases stretch three to five years with only a handful turning over annually, says Fielding, who represented both parties in the sale.
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