Single-Tenant Net Lease Pockets $35M for Ryan

However, the Los Angeles-based FORT Properties' offer for the property at 6700 W. Morelos Place was close enough to developer Ryan Cos. Inc.'s asking price to make the deal work, says Chris Toci, executive director with Cushman & Wakefield of Arizona Inc. in Phoenix.

Furthermore, the Minneapolis-based developer is more of a merchant builder and had no interest in holding the asset long term. "Ryan builds exceptional quality product, but don't have a track record of holding assets over a long period," explains Toci, who had the building's marketing assignment with C&W director Ted Harrison and executive directors Mark Detmer and Bo Mills.

Avnet recently moved into the building from 2211 S. 47th St. in Phoenix near Sky Harbor International Airport. Toci says the move was necessary because the supply chain and logistics company had doubled in size.

Ryan completed the building in April as a build-to-suit for Avnet, which has a long-term lease for the flex space. About 50% of the structure is used for warehousing, with the remainder dedicated to light manufacturing and office uses. According to C&W's second quarter statistics, flex space in the Chandler submarket is renting for 96 cents per sf, triple net.

Toci tells GlobeSt.com the property generated a great deal of interest during its brief stint on the market, with the C&W team conducting at least a dozen tours. "There was strong interest because of the long-term tenant and the quality tenant," he says.

Toci says the TIC buyer likes the Phoenix market and is seeking additional acquisitions. "If they can find the right deal, they'll consider it if it makes sense to them," he adds. In July 2007, FORT acquired the 144,910-sf Foothills Corporate Center II at 14601 and 14605 S. 50th St. in Phoenix.

Representing the buy side was FORT vice president Robert Alter. Jeff Majewski, senior managing director and COO of CBRE Capital Markets in Houston, arranged financing through Wachovia Corp., headquartered in Charlotte, NC.