Brian Ackerman, director with Phoenix-based Cushman & Wakefield of Arizona Inc., tells GlobeSt.com that the seller, Flocchini Associates LCC/Van Wagner Family Partnership of Reno, NV, bought the 11001 N. Black Canyon Highway building in 2002 for $10.97 million. "They sold because of the market and because it's the only asset they owned in Phoenix," he adds. "They'd be here again, but the time was right for this particular deal."
On the other side of the deal, NSD Holdings LLC of La Jolla, CA liked the stability of a national credit tenant, one that had just negotiated a five-year-lease before the building went on the market. "They also liked the fact the tenant had been in the building since 1986," Ackerman adds.
The deal's broker says the buyer won't need to put much capital into the 21-year-old building because the seller had continually upgraded during its hold, in including the addition of covered parking and climate control. Cigna also has put some of its own money into the space.
The C&W team included Chris Toci, Ted Harrison and James Greaves. The team had the asset in the market 30 days, picking up eight offers, according to Ackerman. C&W has been hired to lease the remaining 4,000 sf.
"The building has a timeless appeal," Ackerman says. "It's in good shape and it's in the Metrocenter submarket, which caters to larger tenants because of its strong access to labor."
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