Third Time's the Charm in 40,000-SF Sale

Arrowhead Professional Park at 16222 N. 59th Ave. is 100% leased with medical triple-net tenants and ten-year leases. "Given the strength of the deal, I'd had two buyers in contract earlier," comments Marc Bonilla, associate vice president with Colliers International's Scottsdale, AZ office, who represented Phoenix seller Arrowhead Health Office Properties LLC. "But the first buyer dropped out because of financing, and the second dropped out after the AIG meltdown."

Bonilla tells GlobeSt.com that Jomike Realty also had competition from another buyer in the third go-round. However, the fact that Jomike Realty put more money down on the deal meant the seller had a higher level of comfort with the buyer.

"When it came to the market the third time, in terms of my underwriting, it was important for me to ascertain the buyer's borrowability, and whether they had the funds to close," Bonilla says. "This time, the sale was predicated on my ability to see the cash up close." Jomike Realty, which was represented by Eric Wichterman and Ann Sondrol of Grubb & Ellis/BRE Commercial LLC's Phoenix office, provided all of that for the seller, Bonilla adds.

Bonilla had been involved with the deal from the beginning some years ago, when the joint venture seller, consisting of a real estate developer and general practitioner, had bought the dirt, then built the facilities. He says the seller's plan all along had been to build, stabilize and sell, though acknowledges the plan for Arrowhead Professional Park had been formed before the current downturn. Though the sale was less than estimated by about $1.5 million, "that wasn't so bad, given the size of the deal," Bonilla comments.

Meanwhile, the developer has moved on to create a similar deal, this one dubbed Cactus Park Professional Plaza at 3919 W. Cactus Rd. Bonilla, who is representing the developer on this 20,000-square-foot project as well, says a general practitioner and a chiropractor have signed leases. "We're looking for other medical services to fill it," Bonilla adds. "That's the goal; lease it, cap it, then sell it."