The affiliate of Desert Canyon's developer, Chicago-headquartered Alter Group, sold the other two buildings the 20-acre Desert Canyon Corporate Campus within the past five years. "The development was done, over time, in three phases, and the completion and sale of each of these depended on the development time table and lease-up of properties," James I. Clark III, EnTrust's managing principal, tells GlobeSt.com. The deal clincher for the 2421 W. Peoria Ave. building was a lease renewal with American Express, which stabilized the rent roll.
"American Express and Waste Management account for 95% of the building," Clark says, "and Waste Management just expanded and renewed a year ago." The average lease is five years.
Clark says the building was marketed to regional and national investors without an ask. During its 60 days on the market, the 2000-constructed building attracted more than half dozen offers.EnTrust had not dealt with Washington Capital previously, but "they came highly regarded," Clark says. "They represented a pension fund so they were an aggressive core investor." In addition to offering the next to highest bid, Washington Capital also put up all cash. "Rising interest rates didn't impact the ability to close," Clark adds.
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