TUCSON-An Arizona trust, with 1031 exchange funds to spend, has laid out $835,631 for a 7,187-sf retail store leased for the long term to Aaron Rents.
Sun Trust Equity Funding in Atlanta had the asset at 2211 W. Ironwood Hill Rd. listed as part of a nationwide portfolio sale. "Sun Trust had purchased a cluster of these single-tenant buildings in a sale-leaseback. Then Sun Trust sold off each property at a market rate," explains Steve Julius with Marcus & Millichap Real Estate Investment Brokerage Co. in Phoenix, "and this was the only one in Arizona." He represented the Scottsdale, AZ buyer, the William Barry Shemer and Donna Jean Shemer Revocable Trust.
Julius says Sun Trust, represented by John Glass of Marcus & Millichap's San Francisco office, had multiple offers for the lone Arizona property. "They ended up buying it at the list and a 6.5 cap rate on the rent," he tells GlobeSt.com. The Atlanta-based Aaron Rents Inc. signed a 15-year, triple-net lease at $7.50 per sf, according to the broker. "This is a national tenant with a corporate guarantee and a 15-year guaranteed lease," he stresses, adding it was a good deal for the buyer, who was deploying gain from a recent land sale. "This is a hands-off management investment. Any problems with the building and land are taken care of by the tenant."
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