Young's Inroad Sets Up 114,871-SF Lease/Buy Option

PHOENIX-Young’s Market Co., based in Orange CA, has entered the Phoenix market with a five-year lease for 114,871-sf in a freestanding, office/warehouse building with a quoted rate of 30 cents per sf, net.

According to Andy Markham, vice president of Grub & Ellis/BRE Commercial LLC’s industrial group in Phoenix, the lease includes an option to purchase the 200 S. 49th Ave. building during the mid-term of the lease. Young’s, one of the nation’s largest distributors of beer, wine and distilled spirits, will service retail outlets throughout the Phoenix area from the center.

“This was the appeal of the property, that we had the option to purchase,” says Markham, who with colleague Mike Haenel represented the tenant in the deal. “There was plenty of space available out there, but this was the only one in the trade radius that was freestanding, with an option to buy, at some point, during the rental term.” Gary Anderson and Tony Lydon, also with Grubb & Ellis/BRE, represented the local owner, Maksil Investments Co. LLC.

Markham tells GlobeSt.com that part of the deal involved improvements to the sprinkler system as well as an undisclosed allowance for the tenant to build 20,000 sf of refrigerated space. “They need that to keep the wine at a constant temperature of 70 degrees,” Markham adds.