Randy Colling purchased the portfolio from Sheldon Sternberg of Phoenix. "Sternberg has owned the buildings since the early '90s and felt it was time to take advantage of the market and capture the highest price," says Cary Chandler, an industrial broker with Marcus & Millichap Real Estate Investment Brokerage Co.
Chandler, the seller's broker, tells GlobeSt.com that industrial incubator property is rare, so much so that there were no comparable sales in the Valley upon which to base the pricing. "There's not a lot of space out there like this," he says. "The challenge was that in a lot of ways we were setting the market and we took it out at our best guess."
According to Chandler, the buildings are perfect for individuals who have been working out of their garages--either woodworking or metal shops. "They have no office build-out, it's pure roll-up doors," he adds.
The buildings are scattered throughout the Valley. The portfolio consisted of a 15,872-sf building at 7505-7515 N. 69th Ave. in Glendale; 14,980-sf structure at 2051 E. Cedar St. in Tempe; an 18,900-sf building at 3721 W. Cambridge St. and 21,568-sf structure at 2450 E. Chambers St., both in Phoenix.
Built in 1985-86, the buildings were 95% occupied at sale time. Rents range from $5.40 per sf to $6.00 per sf per year. Chandler says Colling is planning a three- to four-year hold along with rent increases as part of the investment strategy. Tom Grant of Lee & Associates' Newport Beach office represented Colling.
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