TEMPE, AZ-Advanced Foam & Packaging has purchased a 22,616-sf industrial building at 1773 W. First St. for $1.8 million. The seller, Elkhart, IN-based Alpha Systems, will lease back 6,000 sf for two years.

“Advanced Foam needed closer to 15,000 sf and this building offered the size they needed and room for future growth,” says Ken McQueen, a vice president with Trammell Crow Co.’s Phoenix office. “And, they get the lease income from Alpha Systems in the meantime.”

McQueen tells GlobeSt.com that Advanced Foam, which manufactures packaging materials, purchased the building at 1773 W. First St. as part of a reverse 1031 Exchange. Its 10,300-sf existing headquarters and production site is located at 4629 S. 33rd St.

According to McQueen, Alpha Systems, a building and roofing materials distributor, didn’t need so much space. “They were going to sell the building and relocate,” he says. “Instead, they were able to downsize. It’s a perfect fit for both (parties).”

Built in 2001, the West First Street building achieved one of the highest prices per sf at nearly $80 per sf, says McQueen, who teamed with TCC’s Andy Ogan on the transaction. “There’s just not a lot of availability for these types of buildings,” McQueen says. Advanced Foam obtained a loan from Wells Fargo Bank to buy the property.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.