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AVONDALE, AZ-In an off-market transaction, two private investors from Tustin, CA, who have been eyeing the property since late 2007, have paid $13.4 million for a 67,204-sf, single-tenant, flex office building. The deal is their second one in the area in the past year with the sellers.

The build-to-suit at 651 N. 101st Ave. is a branch office for long-term tenant Cummins Rocky Mountain LLC, which is headquartered in Denver. Irving Smokler of Boca Rotan, FL and Peter Lenstrohm from Scottsdale, AZ sold the three-year-old building to Carl Greenwood and Jim McKenzie less than six months after they engineered a trade of the SHPS building at 9305 E. Via de Ventura in Scottsdale.

“They’d conducted business together before and the comfort level was high,” explains Ken Elmer, principal with EBS & Associates in Scottsdale. The deal’s sole broker tells GlobeSt.com that the buyer used 1031 exchange money from an out-of-state sale to acquire the Cummins Rocky Mountain distribution center. “The buyers had their eye on this building back in December and we talked about it a little at the time,” Elmer remarks. “Everyone came to an agreement and it sold.”

Elmer says Cummins has several years remaining on its lease, providing a steady income stream and relatively new asset for the buyers. Although Cummins’ specific lease consideration isn’t available, the average quoted rate is about $1.20 per sf, triple net in the far west submarket.

Elmer says the seller most likely will redeploy its gain from the sale into other acquisitions, but not necessarily as a 1031 exchange. “They’re always looking for new properties,” Elmer says.

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