X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the industrial market.)

PHOENIX-After a three-year hold and repositioning, a local company has sold the 112,800-sf Lakeview Business Center. The five-building flex industrial project was acquired for $13.5 million by a San Mateo, CA private investment group.

Crown West Realty had boosted the 20-year-old asset’s occupancy to 90% following renovation and aggressive leasing. “That’s kind of their business model. They’re not typically long-term holders,” Tracy Cartledge, senior vice president for locally based Grubb & Ellis/BRE Commercial LLC, tells GlobeSt.com. “They try to enhance value, then sell. This is consistent with what they’ve done with their other assets.” The sales team included senior vice presidents Bob Buckley and Steve Lindley plus Rick Lee, principal with locally based Lee & Associates.

Cartledge says the marketing period for the complex at 2840-50 S. 36th St. and 2821-3201 S. 35th St. was brief, but attracted a great deal of interest, with G.W. Williams establishing itself early in the game with a strong offer. In addition, G.W. Williams owns two similar buildings in the neighborhood. “From start to finish, it was about a month-long process,” he adds.

Cartledge says the building, situated on 7.5 acres, has a stable lease roll, with its upside based on demand and potential rent increases. “We and the buyer believe that, given the cost to replicate that product, it’s ideally positioned to benefit from increased rents,” he says. “The market is close to full occupancy and to build that type of product would be expensive today. They couldn’t build for the rents they’re achieving now.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.