X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TUCSON-Thermo Electron Corp. has collected $7.7 million for an 80,600-sf surplus property from a private investor in Los Angeles. The transaction, structured as a leased investment deal, closes with Spectra-Physics Inc., a laser manufacturer with its headquarters in Mountain View, CA, in the building for another nine years.

Thermo Electron sold Spectra-Physics last year to Newport Corp. of Irvine, CA, but held onto the research and development-flex building at 3321 E. Global Loop. “When Thermo-Electric spun Spectra-Physics off to Newport, they (Thermo-Electric) kept the building as income-producing property. But they’re not really in that business any more, so it’s excess real estate,” according to Rick Danis, senior associate with Grubb & Ellis BRE/Commercial LLC in Phoenix. He and G&E/BRE colleague Paul Boyle brokered the deal for the seller; and Matt Kipp of Marcus and Millichap’s Phoenix office represented the buyer.

The property was on the market four to six weeks, with Herbert Tarlow of Los Angeles scoring the win. Danis tells GlobeSt.com that the listing attracted “dozens of offers before we picked our horse and ran with it.”

Spectra-Physics, in the meantime, will remain in the building at a quoted monthly rent of 60 cents per sf, triple net, with annual increases. “This had a 7.5% cap rate,” Danis says, “and the lease in there had another nine years to run. Based on all of these components, this was a typical single tenant, triple net for this market, and time period.”

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?

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.