The triple acquisition by Lincoln subsidiary, Columbia Industrial Properties West, adds 251,735 sf to the property-hungry firm's portfolio in Arizona. "We see it as one of the markets in the country that has good demographics and a good growth environment," David Krumwiede, Lincoln's executive vice president in Phoenix, tells GlobeSt.com of his firm's strong interest in the Arizona market. The latest acquisitions, formerly owned by Arizona Industrial Capital LP, a subsidiary of Cohen Asset Management, are all fully occupied, single-tenant properties, each with long-term leases.
In Phoenix, the firm paid about $3.6 million for more than 88,000 sf at 3702 W. Washington St., currently occupied by the plastic molding firm, Flexpak. A second Phoenix acquisition nudging $1.7 million bought a 40,320-sf industrial property at 800 W. Fairmont St. in Tempe., which is occupied by Safeway. The $6.9-million Tucson purchase got a 129,047-sf building at 6160 S. Palo Verde Dr., leased to Amcor Twinpak-North America Inc., a plastic bottling manufacturer.
Krumwiede says the single-tenant, fully leased properties helped balance the firm's portfolio. "This three-building acquisition is valuable for Lincoln both in terms of quality real estate and increasing our presence in the Arizona investment market," he says. "We view this as a stable, core purchase because of the buildings' high quality, credit tenants and believe these assets will continue to provide incredible tenancy for years to come."
Rick Lee with Lee & Associates Arizona, who handled the sale for both parties, tells GlobeSt.com that the acquisitions come about a year after Lincoln purchased a five-building, 735,000-sf, multi-tenant portfolio in Phoenix from JPMorgan Chase for $11.9 million. "It's a nice complement to the other portfolio," Lee says of the recent deal. "The single-tenant, long-term leases will add some stability to their existing portfolio."
Krumwiede says Lincoln has no plans to curtail its Phoenix buying spree anytime in the future. "We have an appetite for more," he says.
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