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GLENDALE, AZ-A former 619,000-square-foot distribution center that once housed KB Toys is now in the hands of ConAir Corp. The hair-care products manufacturer paid $17.4 million in cash to Heritage Capital Group LLC for the 101 Distribution Center, making this the largest industrial transaction in the area in 2009.

“ConAir will use this as a distribution and manufacturing center,” comments Cushman & Wakefield of Arizona Inc. executive director Bo Mills. Mills, who partnered with colleague Mark Detmer to broker the transaction, tells GlobeSt.com that the buy represents a consolidation move for ConAir.

Heritage Capital Group of Ridgewood NJ acquired the Glendale center at 7811 N. Glen Harbor Blvd. from KB Toys in 2007 through a sale-leaseback deal. At the time, Heritage Capital also acquired KB Toys distribution centers in Clifton, NJ and Montgomery, AL. The plan at the time was for KB Toys to eventually vacate the Alabama site and remain operational in New Jersey and Arizona.

Then the credit crisis hit. “They bought all toys on credit before the holidays, then would pay off that credit in January, after the holidays,” Mills explains. “But when the financial crisis hit, credit froze up, they couldn’t buy toys on credit, and had to shut down.” The company filed Chapter 11, then moved out of the Glendale center in early 2009.

Mills and Detmer received the listing last July, and Mills acknowledges it was slow going. Though there was some interest in leasing the 1990s asset, nothing really clicked. “The activity wasn’t robust by any means,” Mills says. But the building worked out for ConAir, which also has a facility next door at 7475 N. Glen Harbor Blvd., Mills notes.

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