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TEMPE, AZ-Wax Properties Ltd. has concluded a sale-leaseback for a 47,000-sf industrial building, currently occupied by Waxie Sanitary Supply’s janitorial division. Collecting $4.65 million from a Redondo Beach, CA investment group, the seller plans to relocate to a 90,000-sf build-to-suit that’s under construction in Mesa.

The just-sold building at 2810 S. Roosevelt St. was constructed in 1989 by Sun State Builders of Tempe as a build-to-suit for Waxie. Under the sale-leaseback, the San Diego-based company will pay north of $35,000 per month, triple net, during its 16-month lease. The expiration is timed to coincide with a new build-to-suit on 6.25 acres at the intersection of Greenfield and McDowell roads.

William D. Bayless, senior vice president in CB Richard Ellis’ Phoenix office, says the sale was a little sooner than Wax Properties anticipated. “They needed a larger building and they would have sold their current one to someone down the road, but, a buyer was willing to buy it today,” he says, “so Wax was willing to sell and lease it back.” He partnered with CBRE’s Donald B. Mitchell, first vice president in San Diego, on behalf of the seller. Tom Louer, principal of Phoenix-based Lee & Associates, represented the buyer.

Bayless tells GlobeSt.com the asset attracted a couple offers during the marketing period, with the new owner, Santa Ana 164, winning the deal with its offer and terms. “When the lease runs out and Waxie moves, the owners will remarket it for lease or possibly sale,” Bayless says, adding the new owner is holding off on improvements until the building is vacant.

Wax Properties has put 10.69 acres in First Chandler Business Park at the corner of Germann and Stearmann drives for $12 per sf. Bayless says Wax Properties had considered the location for the build-to-suit at one time, but subsequently decided Mesa would fit better into its timeline.

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