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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.

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