GLENDALE, AZ-The Phoenix-based auto mechanic training school, Arizona Automotive Institute, has shelled out $3.25 million to purchase the six-building campus it has been leasing for more than 10 years.
Insignia/ESG Associate Mark Gustin tells GlobeSt.com that the school will save $1 million in the long term by buying, rather than leasing, the 77,000-sf complex. “After analyzing it, it made more sense to them to buy instead of lease,” says Gustin, who represented the buyer along with Insignia/ESG associate director James Harper.
The school, located at 6829 N. 46th Ave. in Glendale, joins a growing number of companies who are using today’s low interest rates and competitive real estate market to buy their own commercial property.
Phoenix-based former owner Kalougata LLC had approached the automotive school in the past about selling the building, but it took the low interest rates and a look at the cost of the remaining eight years on the lease to entice the automotive institute into the deal. Gustin said the school formed 46th Avenue LLC to deal with the real estate venture, which includes six building, several outdoor bays and a parcel of vacant land that can be used for expansion.