Colliers International in Greater Phoenix recently completed the sale of a 63,400-square-foot state-of-the-art office, showroom and warehouse building for $5.9 million, or $93.05 a square foot. The Phoenix flex industrial building currently houses Facilitec Inc. which provides interior office products, design and project management.
King Ranch Properties II, LLLP of Phoenix traded the asset, 4501 E. McDowell Road, to Theory R. Properties, LLC of Southern California, through a 1031 exchange transaction.
Marc Bonilla, a vice president in Colliers’ Scottsdale Office, represented the seller in the transaction. Mike Milic, also a vice president in Colliers’ Scottsdale Office, represented the buyer.
The transaction marks the second time Bonilla has been involved in this property. In 2003, Bonilla sold Facilitec to King Ranch in a sale leaseback transaction.
Bonilla said the timing for the current trade was right for Ed King of King Ranch Properties as he is shifting his focus to assisted living development in the West Valley with his son-in-law, Steve Stratagulios.
“We successfully navigated through a disposition strategy with multiple moving parts while the market fundamentals strengthened in the net lease sector. At the same time the long-standing tenant recommitted to a 12.5 year absolute NNN lease,” Bonilla said. “While serving the tenant’s needs, the asset met the buyer’s criteria to provide secure long-term cash flow.”
“The market recovery and a newly refreshed pro-business environment continue to assist companies such as Facilitec in taking advantage of quality space build outs,” Bonilla said.
