Latest deals from NAI Horizon, SVN, Cashen Realty
NAI Horizon negotiates long-term lease for HVAC firm
NAI Horizon represented a Phoenix refrigeration company in a long-term lease worth $2.235 million at Missouri Falls, 645 E. Missouri Ave., in Phoenix. The space will serve as its administrative office.
NAI Horizon Senior Vice Presidents Barbara Lloyd and Lane Neville and Associate Logan Crum negotiated the long-term lease on behalf of Legacy Air HVAC, LLC of Phoenix, a member of the CoolSys family of companies.
The company is leasing 11,405 SF of the 187,446 SF building. It is expanding its operation from the current location at 3529 E. Wood St., in Phoenix.
“This is an exciting next chapter for Legacy Air and its employees,” Lloyd said. “The spec build of the space worked perfectly for their office layout. The close proximity to so many restaurants and amenities within walking distance was a definite draw.”
Legacy Air has been recognized nationally through certificates and awards by some of the most prestigious companies in America. It performs work in 12 states.
Missouri Falls is located in close proximity to Midtown, Camelback Corridor, and the Piestewa Peak submarkets. It is also within close proximity to SR 51 and I-17.
The landlord, ICIC Commercial Investments 3, LLC of Phoenix, was represented by Mike Strittmatter and Brad Anderson of CBRE.
SVN’s downtown experts close $1.6 million in Phoenix
With the Arizona sun, sports arenas, shopping, dining, entertainment and the Roosevelt Row arts district, no wonder why Downtown Phoenix is booming. New and established companies are flocking to grow and expand their businesses into the trending corridor where plush hotels and educational facilities surround the buildings alike. SVN Desert Commercial Advisors, Justin Horwitz and Paul Borgesen III are two brokers in the downtown Phoenix area that are integral part of the growth.
Just recently, the dynamic downtown expert team closed on two properties within a few miles of each other from downtown Phoenix to the central Phoenix corridor. The 7,156 SF property located at 714 N. 3rd Street sold for $800,000 just south of the Roosevelt Row Arts District in downtown. SVN represented the sellers in the transaction. After owning this and many other properties in the downtown area for generations, the Matz family elected to begin the process of liquidating its holdings. Horwitz stated, “We are so excited to see this building particularly sell to such a solid buyer.” Local business owner, Mike Little worked hand in hand with the seller to acquire the property. Little plans to move his own business into the building while also continuing to offer rental space to the community. “It’s nice to know it’s in equally as good of hands moving forward,” said Horwitz.
Just right up the street off 3rd Ave, is another sale for $860,000. The property is located at 3130 N. 3rd Ave. in Phoenix right on the backside of Park Central Mall. Horwitz and Borgesen III also represented the seller in the sale transaction. Seller 3130 North Third Ave, a joint venture and the buyer, Nogachi, LLC is excited to come in and make some immediate changes. The husband and wife team owns a CPA and law firm respectively. Ruger and Magaly Fontes plans to renovate the 8,668 SF building and occupy a portion while leasing back a small portion of the building to the seller who also has an existing law firm.
Horwitz stated, “We are really looking forward to seeing this building post renovation and to watch that immediate area blossom with everything planned at Park Central Mall across the street.” Park Central Mall was once a retail jewel in the desert and in the process of a $57 million project to revitalize the property. With all the mixed-use projects with restaurants, office and other amenities, this will location will add value to the development in the area.
Big box retail building sells for $3,450,000
Ray Cashen of Cashen Realty Advisors says that the Great Recession of 2008 left a massive overhang of Big Box Retail Buildings exceeding 6 million S.F. Valleywide. This situation was made worse as a result of competition from online retailers like Amazon, eBay, Wayfair and Overstock. As the retail market recovers, the Big Box Retail Building supply has dwindled to less than 4 million S.F. in Metropolitan Phoenix. Health clubs, schools, mini storage, offices and healthcare uses have filled many of the Big Box vacancies. Smaller footprint stores of retailers like Target have back filled vacancies left by Sports Authority and Toy R Us.
The trend continues with a recent transaction. Store Capital Corporation, headquartered in Scottsdale, Arizona, has purchased a 62,286 S.F. Building situated on a 6.87 acre parcel at 1200 N. Alma School Road, Chandler, Arizona, for a price of $3,450,000. VASA Development LLC, Orem, Utah, Craig Donaldson, CEO, entered into a sale leaseback transaction with the Buyer. The Seller in the transaction was Five Sons Furniture AZ LLC, Mike Sensing, Principal of Pruitt’s Fine Furniture.
VASA Fitness intends to invest an additional $3 Million in Tenant Improvements building out a state-of-the-art health club facility within the property. VASA Fitness’ Phoenix expansion plans include five locations in the Valley and the Chandler site is part of the Metropolitan Phoenix footprint. VASA has over 200,000 fitness members and currently owns fitness clubs in Utah and Colorado.
As the economy strengthens, additional absorption within the Vacant Big Box Sector is anticipated. Industry experts predict as much as 2,000,000 S.F. of Big Box absorption could occur by the end of 2018. While there are many traditional retail centers that have survived, Commercial Retail Shopping Center Development has reinvented itself out of necessity. The end result is more choices and convenience for the consumer…and that ultimately is a welcome development.
Ray Cashen of Cashen Realty Advisors represented the Seller in the Store Capital/VASA transaction.