"It's a different type of building," Jerry Hillery, an associate director at Cushman & Wakefield of Arizona Inc.'s Phoenix office, tells GlobeSt.com. "They liked the fact that they had tenants in place. They could get building that could accommodate their needs now."
Located at 1929 W. Lone Cactus Dr., the building was constructed in the late 1980s. Owner-user US Digital Media of Phoenix began leasing 2,300 sf of storage space downstairs a year ago. The new plan is to occupy the entire 20,000-sf floor, tripling its space from a former 6,800-sf location at 21430 N. 20th Ave.
Two tenants--a software firm and real estate brokerage training business--presently office in 8,000 sf on the second floor, where about 3,200 sf is still available. Rent runs 75 cents per sf triple net, according to Hillery.
The Lone Cactus property was the last in an older portfolio belonging to Equus, which recently has set its sights on larger class A office buildings in the Phoenix area, says Hillery. Industrial vacancies in Deer Valley are strong, presently dipping below 10%. Office vacancies do not enjoy quite the same strength in that submarket, where they presently hit the 12% mark.
"They were not averse to becoming a landlord," Hillery says of US Digital Media's switch from tenant to owner. "Because it was not fully occupied, it was a good fit." Hillery represented both parties in the deal.
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