Single-tenant, net-leased building received multiple offers from out-of-state buyers
Phoenix, Arizona – CBRE has announced the sale of a fully leased industrial property in Phoenix, Ariz. to a Hawaii-based 1031 exchange private buyer for $5.5 million or $187 per-square-foot.
Geoffrey Turbow, Gary Cornish, Matt Pourcho, Gary Stache, Anthony DeLorenzo and Bryan Johnson of CBRE represented the seller, a private investor, in the transaction.
Located at 23048 N. 15th Avenue, the 29,353 square-foot property was originally constructed in 2003 and renovated in 2013. The facility features Class A office space, 24’ warehouse clear heights and 61 parking spaces. The two-story building is fully leased to Valenz, one of the nation’s leading medical cost reduction and claims flow management organizations.
The property is within four miles of Deer Valley Town Center, Happy Valley Towne Center and The Shops at Norterra, three major retail centers featuring hundreds of shopping, dining and entertainment options. The building is less than one mile from Phoenix Deer Valley Airport, one of the busiest general aviation airports in the nation.
“At $187 per-square-foot, this deal demonstrates investor confidence in industrial assets with strong underlying property fundamentals,” said Mr. Turbow. “The asset's 10-year, triple-net-lease provides new ownership with exceptional ease of management and durable cash flow supported by inflation-protection. Long-term, single-tenant net-leased assets are in extremely high demand from the private 1031 community.”
Mr. Pourcho added, “The property was leased for 10 years to a single tenant and had multiple offers from investors through the Southwest and Hawaii.”
The buyer was represented by Matt Bittick of CBRE.
Phoenix ranked 11th for total net-lease investment volume in the first quarter of 2021, rising 43.8 percent to $388 million according to CBRE’s U.S. Net-Lease Investment Report Q1 2021.
The Deer Valley submarket remains one of the tightest submarkets in greater Phoenix, as evident by the 0 percent vacancy rate for single tenant industrial and flex buildings above 20,000 square-feet. Overall, Phoenix had record-breaking positive net absorption in 2020, totaling 13,303,097-square-feet.