X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-After just nine months, First Industrial Realty Trust has flipped three industrial buildings, totaling 407,000 sf, for $24 million to First Commerce Center Phoenix LLC, a partnership of Denver-based Mountainwest Industrial Properties. The complex was part of a $34.8-million, six-building acquisition from the Mack Co.

The 405 N. 75th Ave. complex is fully leased. Broomfield, CO-based Corporate Express is the largest tenant with 60,000 sf. “When First Industrial bought the three buildings, they were 85% occupied,” says Payson MacWilliam of Colliers International Inc., who brokered the deal along with his brother, Don. “We leased up the vacant space to three tenants and First Industrial decided to sell them.”

MacWilliam tells GlobeSt.com that the buildings were never formally brought to market. Instead, the Colliers team pursued three potential buyers for the four-year-old buildings, acquired in October 2004. “All three submitted offers and all offers were very close,” he says, adding Mountainwest Industrial Properties ended up with the deal because First Industrial felt comfortable with them.

The buildings offer a mix of a stable cash-flow investment and upside, MacWilliam says. “There’s upside all over the place on this deal because the lease rates are below market,” he explains. Rents in the buildings range from $4.32 per sf to $5.52 per sf, triple net.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.