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PHOENIX-Patience has paid off for a group of tenants-in-common investors that waited nearly eight months to close a $4.1-million acquisition of two industrial buildings, totaling 44,288 sf. The buyers, Fendrich Associates of Denver, Aznaf Family Trust of nearby Glendale and JJGP Inc. of Scottsdale, out-waited nine others, mostly 1031 exchange investors.

“The seller, Eldad Arnon, wanted to delay closing so he could find a 1031 property,” says Jane Poucel, a vice president of Colliers Classic. “So that kicked out all the buyers who were in a 1031 exchange.” The package consists of a 25,728-sf building at 701 W. Deer Valley Rd. and an abutting 18,569-sf structure. The asset is across the street from the Deer Valley Municipal Airport.

“The buyers liked the location and felt it was a product that would always remain full,” Poucel says. The mid-1980s’ era buildings are fully leased to local tenants with little lease roll over and an average rent of $8.76 per sf, he adds. Metro Property Group of Phoenix will continue to lease and manage the asset.

Poucel says the buyer obtained a 10-year loan from Industrial Alliance Pacific Life Insurance Co. for 75% of the purchase price. The loan has a 5.7% fixed-rate interest and 25-year amortization. Bob Zambo of Sunrise Mortgage in Scottsdale arranged the financing. Poucel represented the buyers while Arnon had Mark Phillips from Sperry Van Ness’ local office negotiating his terms.

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