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KINGMAN, AZ-Barely a week after Contech Construction Products Inc. of West Chester, OH signed a six-year sublease with Cascades Tissue Group of Arizona for 100,010 sf at 4625 Interstate Way in this city between Phoenix and Las Vegas, the building’s owner put the property on the market as a net-lease opportunity. Big Industrial LLC of Prairie View, KS is asking $16.3 million for the 464,200-sf manufacturing and distribution facility.

According to Richard Danis, a senior vice president with Grubb & Ellis/BRE Commercial in Phoenix, the sublease was not a factor in the decision to sell. Danis is marketing the property with Paul Boyle and Anthony Lydon, also senior vice presidents in the Phoenix office. The building is fully leased to three tenants whose lease expiration terms range from 2011 to 2013, and Danis says the building would have made an attractive investment opportunity even if Cascades Tissue had not found a subtenant for its excess space.

“It’s the preeminent distribution facility in the Mojave County area,” says Danis. “The air park it’s located in has limited vacancy. For large-space users, it’s the only game in town.” He calls Kingman the equal of Phoenix, Las Vegas and California’s Inland Empire in terms of distribution potential, providing easy access to 30 million people. Because of that, he says the property should prove attractive to a wide range of buyers from private capital to institutional investors. “We’ve got quite a bit of interest already,” he reports. “Based on how much early positive response we’ve seen, we expect it won’t take that long to identify the best player.”

Explaining the reason for the sale, Big Industrial managing director Todd Mendon says the company has owned the property for seven or eight years and determined it had fulfilled its investment goal. “We think there are some new opportunities out there we’d like to take advantage of. It’s performed well for us, and the market seems right for selling,” he remarks.

Rick Collins, a principal with Ross Brown Partners in Scottsdale, AZ, represented Contech in the sublease. He describes the transaction as a “fairly vanilla manufacturing deal that happened to find its way to Kingman.” He reports the company, which plans to use the space to manufacture drainage pipe and distribute it to West Coast and Southwest markets, considered properties all across the region before settling on this one. “Proximity to freeways, rail access and good employees is what led them to that location,” he says. “But Cascades also agreed to very aggressive terms and conditions.” Though Collins would not disclose the sublease terms, a 57,862-sf space in the same building is being offered for sublease at $3.96 a sf per year.

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