Wright got the deal done through carry back financing, as he did in 2007 when the asset at 16641 N. 91st St. was sold to a home-builder, who paid $7 million for it. Greg Hopley with Colliers International's Scottsdale office says unfortunately the builder ended up defaulting on the loan when the economy went south and his business dried up.
"Wright did a carry-back at that time," says Hopley, who represented Wright in the asset's sale to Schmidt. "But the gentleman who bought the building failed. When he entered the market, it was booming. He ended up going from Mount Everest to Death Valley."
Hopley tells GlobeSt.com that Wright and his brothers went through the foreclosure process, and once they got the building back, started marketing it again. Schmidt, who owns and operates the Scottsdale Gun Club next door, was looking for a location to house several of his business interests and jumped on it almost immediately. Hopley says the deal closed in 60 days.
"The seller went through a very thorough process of checking the financial capacity and ability of the buyer," says Hopley, explaining how Wright took steps to avoid being burned a second time by a potentially bankrupt buyer. "Once he realized the buyer was a good user with financial capacity, everything gelled very well."
Wright is taking the extra step of retaining space in the building for two years while Schmidt takes 25,000 square feet. "By agreeing to act as the tenant, the seller is helping a lot," Hopley comments. "And with the buyer's growth, they'll have the opportunity to grow into the space, should they need it."
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