"He was basically looking for a single-tenant deal, a good cash flow situation and this fit him perfectly. He was very aggressive on the terms," Ari Spiro, a senior investment advisor at Sperry Van Ness in Phoenix, tells GlobeSt.com. The 25,500-sf building, located on 3.5 acres at 725 W. Warner Rd., stood on the market for two months before the seller gave the nod to Jeff Gordon of San Jose, who placed the highest bid out of six. Escrow lasted two months to close at 1% below the asking price at an 8.8% cap rate, says Spiro.
Gordon obtained an acquisition loan from Ventura, CA-based Affinity Bank at a 70% loan-to-value ratio to make good on the deal. It is his first acquisition in the Phoenix market.
Located in the four-year-old Cooper Marketplace, the stand-alone Mountainside Fitness neighbors Checker Auto Parts, Hi-Health, KFC and Tutor Time. The Phoenix-based fitness center renewed a 15-year lease last year for $15.75 per sf. Mountainside Fitness, which has several locations in the metro, is one of the original tenants in the shopping center.
"Typically, fitness properties are a little difficult to finance, difficult to transact. This is a unique building," Spiro says. "If you remove the fitness equipment, you could put in any type of big-box user. This was all single level, so it would be a pretty easy conversion into another use." Spiro, Jeff Chalfin and Mike Day, all with Sperry Van Ness, represented the buyer and seller, Glenwood Equities LLC of Gilbert.
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