"We liked their ability to close, not to mention the fact that they have developed over a million sf of industrial and office product in this area and the fact that they had trade money from a recent sale of one of their assets," says Mike Haenel of Grubb & Ellis/BRECommercial.
Orsett Properties Ltd. Inc. of Wellesley bought the southwest corner of Sossaman and Warner roads from Ali Advisors Inc. of Phoenix, which had it up for sale for three years.Routing for Loop 202, which is expected to run directly through the property, was onereason marketing efforts lasted longer than usual, Haenel says. The seller courted four offers before entering a six-month escrow period with Orsett.
Haenel tells GlobeSt.com that the buyer was able to close at about 10% below the asking price and negotiate seller carry-back financing. The balance of the deal was funded by income from a 1031 Exchange sale.
Starting in 2006, Orsett will sell large parcels of the site to industrial owner/users and develop distribution, general industrial buildings and manufacturing facilities for its portfolio. Estimated project costs, building mix and even a project name have yet to be decided, Haenel adds. It's expected to take five to seven years for full build-out.
"I believe that the timing couldn't be better because of Loop 202, which will bisect the property by March of 2006," Haenel says. "Just the overall residential and retail activity in the surrounding area in the last 12 months has been amazing." The project sits a half-mile from the under-construction Gilbert Gateway Town Center retail complex. Haenel, Andy Markham, Marc Tuitte and Brent Moser, all with Grubb & Ellis/BRE Commercial, brokered the transaction.
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