Scottsdale Airpark industrial buildings sell for $14 million
A rare, 4-building industrial flex portfolio in the Scottsdale Airpark traded hands for $14,000,000 in an all-cash transaction. The closing signifies the largest multi-tenant industrial sale since September 2017 in the Scottsdale Airpark. ORION Investment Real Estate marketed the portfolio for less than one week before procuring the Portland-based buyer, Schnitzer Properties, who closed the deal for full price, a 4.33% CAP Rate, in less than 60 days. Schnitzer Properties is a regional, professionally-run, family-owned company that has been doing business since 1950. Schnitzer owns and operates over 28 million square feet of real estate, comprising more than 185 properties in six western states.
Built in the 1980s, the 60,000 square foot buildings are comprised of 7762, 7802, 7741 and 7721 East Gray Road. The buildings are 97% leased to long term tenants at below market rents creating the opportunity for immediate upside potential for the new owner. The property is located in the highly sought-after Scottsdale Airpark and features 34 leasable units divided between four buildings, on 4.38 acres of land. The portfolio benefits from the synergistic tenant mix of regional and local businesses, which benefit from the smaller, more affordable floor plates. The four buildings have 164 parking spaces (2.34 per 1,000 SF ratio).
“The buyer was attracted to this rare opportunity to acquire a substantial portfolio within a submarket with high barriers to entry. They recently purchased a building nearby and they were interested to add to their Airpark holdings,” stated Jay Krew of ORION Investment Real Estate who negotiated the transaction.
ORION Investment Real Estate (“ORION”) is a leading full-service brokerage firm based in the Western United States. With 10+ years of continued growth and success, and more than a billion dollars in recent transactions, the ORION team provides first-class service to the commercial real estate community. Boasting an extensive knowledge of the market and properties and a tech-forward environment, ORION uses a tailored marketing and structured approach to each client to unlock the potential of each unique deal. ORION is headquartered in Old Town Scottsdale, Arizona.