The 11-year-old call center sits at 5407 Andrews Ave., an 11.04-acre hard corner at the "Main and Main" of the business hub for the Permian Basin oil-rich fields. The location, tenant and triple net lease's term made it "very desirable" when it hit the market, says Steve Wolff, senior associate with Grubb & Ellis Co.'s investment sales team in Dallas. He tells GlobeSt.com that the buyer's offer was the second one to go on the table during the two-month marketing. "And," he adds, "it was the strongest. The money went hard fast."
The buyer of the all-cash deal was represented by Tom Lagos, a Grubb & Ellis vice president in West Los Angeles. Wolff and Ken McLeod, also a vice president in Los Angeles, brokered the deal for a Los Angeles-based investment group, which also has a 242,000-sf, 80%-leased distribution center in Denison, TX on the market for $2.9 million sf. The multi-tenant building at 1404 W. Washington St. was a former distribution center for Safeway Inc. based in Pleasanton, CA.
Wolff says the Midland property's location at a primary intersection builds in redevelopment opportunities in the event the triple-net tenant doesn't stay beyond its commitment. The Atlanta-based Cingular Wireless, though, holds option rights with two- to five-year terms for the call center site when the 12-year master lease burns out. Midland's population is pushing 100,000 with an average annual household income of $61,864--and steadily growing due to its value as a business portal for oil-rich lands.
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