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$2M Nails Industrial Asset

PHOENIX-Low interest rates and equity ownership prove convince a cabinet and fixtures manufacturer to lay out $2.2 million for a 38,116-sf warehouse near Sky Harbor. The buyer saves about $2,000 per month versus its cost to lease.

By Lee Simmons | Updated on July 28, 2004

PHOENIX-A manufacturer of retail display cabinetry and fixtures has purchased a 38,116-sf warehouse in the Sky Harbor submarket for $2.2 million, capitalizing on low interest rates and a value-add property.

The Phoenix-based Fine Woods Manufacturing Inc. estimates it will save $2,000 per month with owning 5202 S. 31st Place versus leasing at 1901 W. Filmore St. in the central corridor, Tom Louer, a principal with Lee & Associates Arizona in Phoenix, tells GlobeSt.com. Thomas Real Estate Investments, the cabinet maker’s purchasing entity, bought Southern Gardens from the Johnson Groves Partnership of Phoenix.

“You’ve got 40-year low interest rates, the attractiveness of upside appreciation and equity owners who want to make the investment,” Louer says. “He had the cash and interest, knowing he would be in business for next several years.”

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