First Industrial Hawks 384,683 SF for $33M

PHOENIX-In an off-market deal, First Industrial Realty Trust Inc. has sold the last piece of the six-building First Commerce Center, bought two years ago during its construction. The 384,683-sf trio has gone to Los Angeles-based EJM Development Co. for $33 million.

Colliers International senior vice president Payson MacWilliam says the Chicago-based First Industrial bought three completed and three under-construction buildings from the Mack Co. The REIT immediately flipped three to a Denver buyer and held onto the under-construction set, which delivered in June 2005 at 7225 W. Roosevelt St., 825 N. 73rd Ave. and 725 N. 73rd Ave. "Their intention was to sell the final three buildings upon completion and lease-up, but then we got offers that pushed the sales date up a little," says MacWilliam, who teamed with Colliers' Don MacWilliam to broker the transaction for both parties.

Payson MacWilliam tells GlobeSt.com that the just-sold structures, positioned on 26 acres, are 88% leased, with letters of intent out for the remainder of the space. "We leased two of the spaces remaining at close and I'd say we should be at 100% occupancy within the next 60 days," says MacWilliam, who is overseeing leasing activities with his brother. "It's a very good complex in a very good location."

Payson MacWilliam acknowledges the buildings were never formally brought to market, but the interest was strong from potential buyers. He says EJM Development, which has holdings in Phoenix, ended up with the acquisition for many reasons, including offer and track record in the area.