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GLENDALE, AZ-Private investor KB Stone LLC from Roseville, CA, has paid $3.8 million for a retail building leased for the long term to Tutor Time. The transaction was part of a 1031 Exchange.
The seller was San Diego-based Tutor Glendale Group, which built the 11,752-sf facility at 5550 W. Bell Rd. in Glendale earlier this year for Tutor Time. The school's lease runs for another 22 years, says Jamie Medress, a senior investment associate with Marcus & Millichap's Phoenix office. He partnered with Steve Gonzalez to broker the deal for the seller.
Medress tells GlobeSt.com that the Tutor Time facility received 10 offers within a one-week period. "There was a lot of interest because it's a new building and the quality of the tenant and the lease structure, which is a triple net lease with annual rental increases," he says.
KB Stone traded out of apartments in California to buy Tutor Time. "They were looking for a property with no landlord responsibilities," Medress says. "They didn't want to have to worry about anything." KB Stone was represented by Rocky Schotsal of Marcus & Millichap's Sacramento office.
KB Stone obtained financing from the San Jose-based La Jolla Bank to acquire Tutor Time. The loan was arranged through Marcus & Millichap Capital Corp.
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