"It was advantageous for the tenant because they had a lot of money for moving expenses and tenant improvement. They were going to be tying up a lot cash," Matt Hobaica, a principal with locally based Lee & Associates Arizona, tells GlobeSt.com.
Located at 2940 W. Willetta St., Hewson Westside Business Park was constructed in the late 1970s. Western Millwork's two-year lease includes a purchase option, which the company plans to use by late 2004, according to Hobaica. The company will relocate from 2525 W. Coronado Road, where it owns two buildings totaling 22,000 sf.
The deal's terms were especially ideal for Western Millwork, says Hobaica, since the company did not immediately have acquisition financing available. The single-story, concrete tilt-wall building includes a fenced yard adequate for Western Millwork's equipment storage, as well as a fire sprinkler system, dock-loading capabilities and additional office space. The previous tenant was a wood manufacturer, says Hobaica.
Western Millwork will hold on to its Coronado Road facility as it expects rapid growth in demand for its products. The Southwest Phoenix submarket offers a more established industrial environment for prospective buyers, Hobaica says, where vacancies are9.5%. Hobaica and Allen Lowe, also with Lee & Associates, negotiated the deal on behalf of both parties.
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