GILBERT, AZ-A California group that had been doggedly searching for a 1031 exchange property in the Valley has ended its hunt with the purchase of an 8,800-sf building that, appropriately enough, is home to the Fox and Hound Restaurant.
Jamie Medress with Marcus & Millichap's Phoenix office tells GlobeSt.com that the Pamale Co. of Diamond Bar, CA, picked up the freestanding property at 1017 E Baseline Rd. in Gilbert with a $3.65 million, all-cash offer and a promise to close on the deal in three weeks.
"There were competing offers," Medress admits, "but the seller went with them because it was an all-cash, 21-day deal." San Diego-based seller, the Focus Group, had four other offers to pick from, Medress adds, but Palmale's quick-closing terms and full-price offer were hard to beat.
For the money, the buyers picked up a restaurant property fronting the Shoppes at Gilbert Common, a 250,000-sf shopping center anchored by Kohl's and a tenant with a 19-year lease and two five-year options to renew. The restaurant, located at Baseline and Cooper Road in one of the fastest growing cities in the nation, currently pays $199,482 annually in rent, which is backed by a rent guarantee from Total Entertainment Restaurant Corp. The cap rate on the property also was 6.5%, Medress says.
"It was a nice clean deal in a great location," said Medress, noting the location was a key selling point for the property. The building, which was on the market just 30 days, was sold by Medress and Pete Gonzalez, also with Marcus and Millichap. Both brokers represented the seller in the transaction. The buyer's broker was David Tanner with Coldwell Banker Commercial of Diamond Bar.
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