Buyer of record, MSFPII LLP, purchased the 6400 Hollister St. property from a local owner, Green Park Care Inc., which acquired it in 2002. "This was entirely financially driven," says Tyndall Yapp, a vice president in Grubb & Ellis Co.'s local office. "It was based on the credit of the tenant and how much they're paying in rent."
Broomfield, CO-based Corporate Express, one of the world's largest distributors of office supplies and services, has 12 years left on a build-to-suit lease that's valued at roughly $1 million per year, according to Yapp. The firm uses about 20% of the space for office functions.
Yapp tells GlobeSt.com that the Corporate Express property was not actively marketed. "We knew that the owner would sell at a certain price and we were able to bring a buyer to him," he explains.
The building, situated on 11 acres near the intersection of Tidwell Road and Hollister Street, traded at a 7% cap rate. "This investment has no upside, it's almost a shelter for the buyer--a place for them to put their 1031 money," Yapp says. The buyer sold several retail assets in California, using $8 million as a down payment.
Besides Yapp, the seller's Grubb & Ellis team included Frank Onorato, Thad Hickman and Jay Jenckes. Chris Jackson and Todd Lorber with Grubb & Ellis' North Los Angeles office handled talks for the buyer.
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