FORT Takes New Suburban Phoenix BTS
- Jul 28, 2008
Despite a local office market pushing 19 percent vacancy, the newly-constructed Avnet Building in the Phoenix suburb of Chandler was sold to FORT Properties Inc. for $35.2 million. Phoenix-based Ryan Cos. US completed the build-to-suit facility (pictured) in April. Located within the Chandler Freeways Business Park at 6700 W. Morelos Place at the junction of Interstate 10 and the San Tan (Loop 202) Freeway, the site is within the growing hub of Chandler’s industrial sector. The building has approximately 230,000 square feet of space and is fully occupied by Phoenix-based Fortune 500 firm Avnet Inc. which provides supply-chain, logistics, product assembly, device programming, computer system integration and engineering design assistance. The facility serves as an assembly and integration operation for Avnet, with approximately 50 percent of the space being used for warehousing and the remainder for light manufacturing and office space. Ryan/Pilgrim Investments Chandler Freeways L.L.C., an entity led by Ryan Cos., sold the property to FORT, a real estate investment firm specializing in tenant-in-common investments and 1031 exchanges. This is the second building FORT Properties has purchased in the Phoenix market in the last 12 months. The first acquisition was Foothills Corporate Centre II in July 2007 through Chris Toci of Cushman & Wakefield, who is also the broker for the Avnet Building. “Ryan typically builds exceptionally good products and they typically build and sell,” Chris Toci, executive director with Cushman & Wakefield, told CPN. “The site is in a blue chip submarket with access to transportation and a well educated, skilled workforce. Breaking last quarter’s posting of negative net absorption, the Phoenix office market rebounded with a slightly positive net absorption of 27,414 square feet. Of the 22 submarkets, 11 showed positive net absorption. The Midtown and Tempe South/Chandler submarkets accounted for the highest gains with 78,414 and 55,743 square feet respectively, according to a second quarter report prepared by Grubb & Ellis|BRE Commercial L.L.C. FORT plans to retain Ryan Cos. as the management firm for the Avnet Building. Chris Toci, Ted Harrison, Mark Detmer and Bo Mills of Cushman & Wakefield of Arizona Inc. served as exclusive sales agents for the property and negotiated the transaction. FORT Properties vice president of real estate Robert Alter represented the firm in the deal. Jeff Majewski of CBRE capital markets arranged financing through Wachovia Bank. Ryan Cos., is a national commercial real estate firm offering integrated design-build and development, as well as asset, property and facilities management services to its customers. Ryan specializes in office, industrial, retail, medical and public sector projects across the United States.FORT Properties is one of the nation’s leading sponsors of tenant-in-common investments and 1031 exchanges. Founded in 2004, FORT Properties targets Class A properties. The company purchases office and industrial properties in high growth and emerging areas that are generally in the $10 million to $75million range.