IIT Buys 808 KSF Industrial Building in Mesa, Ariz.; Pays Cash
- May 20, 2013
Industrial Income Trust, of Denver, a non-traded REIT, has purchased the 11-building, 808,400-square-foot Broadway 101 Commerce Park in Mesa, Ariz., for $77,002,000 in a cash deal, it was announced Thursday by Cassidy Turley. The closing took place the previous day, Commercial Property Executive was told by a spokesperson for Cassidy Turley, which represented the seller, Lincoln Property Co.
Built in two phases in 2005 and 2007, Broadway 101 Commerce Park comprises five warehouses, three general industrial buildings and three office/warehouse buildings. At 2140-2360 E. Broadway, the property is one-half mile from the Loop 101/Price Freeway.
The Cassidy Turley sales team included executive managing director Tom Powers; executive vice presidents Bob Buckley, Steve Lindley, Tracy Cartledge, Mike Haenel and Andy Markham; and vice president Marc Tuite. Powers works in Cassidy Turley’s Cincinnati office, while the other six brokers are in the Phoenix office.
Broadway 101 triggered “exceptional buyer interest with major institutional investors including several that were new to the Arizona market,” Buckley said in a release.
In addition, Cassidy Turley has handled the leasing at Broadway 101 since the project’s inception. The park is leased to a diverse tenant base that includes Worldwide Technology Holdings, PCT International, Aviall Services (a Boeing subsidiary), Mitel Networks, Siemens Water Technologies and Patterson Dental Supplies.
While the property was in escrow prior to closing, the Cassidy Turley spokesperson told CPE, the property enjoyed additional lease-up, with its occupancy moving into the high 80 percent range.
That’s consistent with nearby properties, according to first-quarter 2013 market stats from Cassidy Turley, because the West Mesa submarket ended the quarter at 11.6 percent average vacancy.
Overall, industrial space in metro Phoenix is doing dramatically better than just a year ago, according to the Cassidy Turley report, with user activity up sharply, strong net absorption, spec projects increasing and rents likely to rise 3 to 5 percent by year’s end.
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