The dealer and distributor, which has more than 20 retail locations throughout Arizona, Nevada and New Mexico, has signed a 10-year lease for a warehouse at 6655 S. Kyrene Rd. The deal has a payout of nearly $6 million for building owner, Denver-based ProLogis, says Curtis Brown, a partner with Ross Brown Partners Inc.
Arizona Motorsports Group will move from 50,000 sf at 2401 S. 7th St. in south central Phoenix in May. Brown tells GlobeSt.com that the group had about 18 months left on its existing lease, but decided to sublease the space after finding the Kyrene building. "They were running out of space," he explains. The group represents more than 20 manufacturers, including Harley Davidson, Honda and BMW.
Arizona Motorsports Group's executive team initially thought doubling its space would be adequate, but soon realized that would be a short-term solution. The team then decided to look for about 150,000 sf on the east side of the Valley because it didn't want to alienate employees by moving too far from the existing facility.
"They could have done a build-to-suit given the time they had left on their lease, but once we went through the analysis, they didn't want to do one because of expense and timing," Brown says. "They wanted to move now, not later."
The Kyrene Road warehouse, built in 1999, was vacated in October 2004 by MTD Southwest. Brown tells GlobeSt.com that ProLogis was very "motivated" to get a deal done with Arizona Motorsports Group, working out a stair-stepped package. "The economics of the deal made sense because they pay for what they need now and grow into the balance of the building," he explains.
The location will be used for distribution to Arizona stores as well as corporate administration, marketing and management offices. About 15,000 sf to 18,000 sf will be built out for office use, Brown says.
Besides Brown, the tenant's team included Rick Collins and Cameron Boyd. ProLogis was represented internally by Patty Stevens.
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