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Theater Property Trades for $13M

PHOENIX-A Scottsdale buyer calls it a wrap with the $12.9-million purchase of a 14-screen AMC movie theater at the Esplanade. With neighbors like the Ritz Carlton and Biltmore Fashion Mall, the multiplex trades with a 9% cap rate in tow.

By Lee Simmons | Updated on June 07, 2004

PHOENIX-AMC 14 at the Esplanade has sold to a Scottsdale buyer for $12.9 million. The multiplex, located a short walk from the Ritz-Carlton Phoenix and Biltmore Fashion Mall in the Camelback Corridor, is seven years into a 20-year lease with a $1.2-million value.

“We closed at a 9% cap, which is a very aggressive cap for theaters,” John Wise, senior director of the national office and industrial properties group at Marcus & Millichap in Atlanta, tells GlobeSt.com. “Most are usually around a 10 or 11. We were able toachieve that because of the great location of the property.”

Scottsdale-based Spirit Finance Corp. emerged from a dozen offers as the winning buyer, adds Wise, based on the investor’s local reputation and ability to close with all cash. “They were local and that was an important factor because they really understood that this is a tremendous location,” Wise says of the seven-year-old theater property.

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