"The fact that cap rates are as impressive as they are, now is the time to take advantage of the market," Jamie Medress, a senior associate with Marcus & Millichap in Phoenix, tells GlobeSt.com. Wells Fargo Bank, trustee for the Raddatz Trust of San Diego, purchased the quarter-acre property at 2253 E. Baseline Road in an all-cash deal, he says.
The restaurant was marketed 45 days, receiving four bids before settling into a two-week escrow. "Cash and the fact that they were able to move quickly were important," Medress says of the buyer.
According to Medress, Arizona Colorado Enterprises, led by investor Joel Ladin of Santa Barbara, CA, sold a five-year-old, build-to-suit to take advantage of outstanding cap rates. The Gilbert location's 6.75% cap at closing was no exception and the seller expects to dissolve all six properties in his portfolio within 90 days, he adds.
The new owner got a 16-year tenant with rent running $35.95 per sf, triple net. "It's a 'coupon clipper' deal, where the buyer goes to the mailbox every month to get a check," says Medress, who teamed with Marcus & Millichap's Steve Gonzalez to package the first sale. Rex Huffman of Voit Commercial in Phoenix represented the buyer.
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