The center in question at 211 N. Litchfield Rd. is Davis Home Furnishings, owed by Goodyear entrepreneurs Rodney and Louise DeSanti. When the DeSantis wished to relocate, Scottsdale-based RGB Real Estate Advisors bought the building for $3.5 million, negotiating a year-long lease-back for the seller.
At the same time, RGB negotiated a 10-year, $3.6 million lease with Goodwill of Central Arizona for the Davis Home Furnishings building. Goodwill wanted the building for relocation and expansion for one of its stores.
However, "Goodwill's lease was expiring, and they needed to take occupancy in the building sooner than the seller was able to vacate," comments Russell B. Groen with RBG, a consultant and co-investor in the transaction. Groen says the building owner of Goodwill's current location at 1450 N. Dysart Rd. in Avondale, AZ agreed to extend the lease for another year.
Groen tells GlobeSt.com that the more than 30-year-old building being vacated by Davis Home Furnishings won't require renovations except for Goodwill's TIs, which were part of the lease consideration. Despite the deal's complexity, Groen says it represents a good one for his company.
"There's about a million and a half in profit when you capitalize what we're in this for," he adds. "This was a sweet deal for all concerned."
The building's listing agent was Gregg Abbot with De Rito Partners Inc. of Phoenix. Andy Kroot, also with DeRito, represented Goodwill in structuring the lease. GE Commercial Finance in Stamford, CT provided the $3.3 million acquisition loan.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.