MESA, AZ-A Gilbert buyer has picked up a 12,224-sf, single-tenant building, paying the $1.5-million asking price and full replacement cost. The retail asset comes with an existing five-year lease at a price mirroring the replacement cost.
Moldovan Properties LLC beat out eight other offers with its high bid for 1101 W. Guadalupe Rd., a single-story building on a pad site in Mesa's Regal Square, Tim Rios, with Marcus & Millichap's Phoenix office tells GlobeSt.com. "One of the things that was nice about this property is that when the lease is up, it can very easily be converted to multi-tenant use," Rios says.
Rios says many buyers in the Phoenix market are paying a substantial premium above the replacement cost because the area is such a hot market for investors. Moldovan, however, picked up the Guadalupe and Alma School Road building at a price tantamount to replacement, making the purchase a good deal in the Valley's frenzied seller's market, he explains. Adding to the incentive to buy is the five-year balance on the lease for the single tenant, Design Source Furniture, he adds.
Rios along with Lori Goad and Ray Fontaine, both with Marcus & Millichap, handled the transaction for the buyer. The sellers, Stephen and Judith Fuller of Tempe were represented by independent broker Bob Haden of Scottsdale.
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