PITTSBURGH-Alex-Forbes and Murray LP, the affiliate of a locally based developer, has sold the mixed-use building at 5740 Forbes Ave. to 210 West Washington Square Associates, a Philadelphia-based partnership, for nearly $11.5 million, or $229 per sf, in a 1031 exchange. The three-story, 51,975-sf building at the corner of Forbes and Murray avenues was completed in 2004.
Rite Aid, a Thai restaurant and Countrywide Bank occupy the ground floor. Tech-related office users are the primary tenants on the second and third floors. The Taylor-Zang Retail Group of the Philadelphia office of Marcus & Millichap represented both the buyer and seller in the transaction.
According to Mark Taylor, "this sale represents a strong price for this particular submarket, which is in the Squirrel Hill neighborhood. The building traded at a 7.18% cap rate."
Dean Zang tells GlobeSt.com, "the building was sold as if it were 100% leased. The seller was in negotiations with a tenant for the only remaining 12,000 sf at the time of the sale, and has a master lease under which it pays rent for that currently vacant last bit of space." The average rent rate, he says, is about $17.50 per sf, triple net. Zang and Taylor are both directors of the Marcus & Millichap national retail group.
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