Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHANDLER, AZ-FORT Properties Inc.’s pre-emptive offer of $35.2 million on the single-tenant Avnet Building has allowed it to walk off with its second asset in Greater Phoenix. The flex property has traded hands in a slow market, in which there continues to be a disconnection between seller expectations and what the buyer will pay.

However, the Los Angeles-based FORT Properties’ offer for the property at 6700 W. Morelos Place was close enough to developer Ryan Cos. Inc.’s asking price to make the deal work, says Chris Toci, executive director with Cushman & Wakefield of Arizona Inc. in Phoenix.

Furthermore, the Minneapolis-based developer is more of a merchant builder and had no interest in holding the asset long term. “Ryan builds exceptional quality product, but don’t have a track record of holding assets over a long period,” explains Toci, who had the building’s marketing assignment with C&W director Ted Harrison and executive directors Mark Detmer and Bo Mills.

Avnet recently moved into the building from 2211 S. 47th St. in Phoenix near Sky Harbor International Airport. Toci says the move was necessary because the supply chain and logistics company had doubled in size.

Ryan completed the building in April as a build-to-suit for Avnet, which has a long-term lease for the flex space. About 50% of the structure is used for warehousing, with the remainder dedicated to light manufacturing and office uses. According to C&W’s second quarter statistics, flex space in the Chandler submarket is renting for 96 cents per sf, triple net.

Toci tells GlobeSt.com the property generated a great deal of interest during its brief stint on the market, with the C&W team conducting at least a dozen tours. “There was strong interest because of the long-term tenant and the quality tenant,” he says.

Toci says the TIC buyer likes the Phoenix market and is seeking additional acquisitions. “If they can find the right deal, they’ll consider it if it makes sense to them,” he adds. In July 2007, FORT acquired the 144,910-sf Foothills Corporate Center II at 14601 and 14605 S. 50th St. in Phoenix.

Representing the buy side was FORT vice president Robert Alter. Jeff Majewski, senior managing director and COO of CBRE Capital Markets in Houston, arranged financing through Wachovia Corp., headquartered in Charlotte, NC.

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?


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.