PHOENIX-A Scottsdale developer has sold the just-completed, three-building Mack Deer Valley Phase II in two separate deals for $28.91 million. The 237,785-sf industrial project is fully leased.
Two structures at 21420 and 21430 N. 15th Lane ended up going to Irvine, CA-based Cornerstone Real Estate Funds for $23.15 million. Meanwhile, Premier Garage, which has its corporate headquarters in Phoenix, acquired the 57,000-sf building at 21405 N. 15th. Lane for $5.76 million.
Steve Sayre, senior director in Phoenix for Cushman & Wakefield of Arizona Inc., says all three buildings, sitting on 13 acres, began as holds on the part of Fort Lee, NJ-based developer Mack Co. Mack Co. However, with the demand for industrial product so high, Cornerstone made an offer for the two buildings and Premier exercised its option to buy after leasing its structure for one year.
Sayre, who represented the seller on both transactions, tells GlobeSt.com that Cornerstone waited a year to close on its two-building acquisition to accommodate the seller's tax situation. "The buyer was okay with that, but wanted it leased up by the time of closing," Sayre says. "That happened."
Cornerstone's fully leased buildings include tenants like Medina Manufacturing, California Closets, Brown & White and West Coast HVAC Supply. Sayre says the leases are five to eight years long, with no immediate roll on the horizon.
"The way land prices are appreciating, and the cost of construction rising for replacement, these owners are pretty well-insulated and should be able to retain tenants or find new ones to pay market rates for the time," Sayre says. "It's a fantastic institutional type of product, and I think it'll always be one of the best-performing product types in that submarket."
C&W's director Pat Harlan and senior director Jim Wilson worked with Sayre on behalf of the seller. Mark Linsalata, principal with the Phoenix office of Lee & Associates, was on hand for Premier Garage while Cornerstone was self-represented.
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