Paul Boyle, senior vice president for Grubb & Ellis/BRE Commercial LLC in Phoenix, says the sale of 501-05 W. 8th Ave. represented a 1031 exchange for buyer and the seller, Robert Reisner. He and Rick Danis, also with Grubb & Ellis/BRE Commercial LLC, handled both sides of the transaction.
The property features a 1985-built structure, 96% occupancy and additional land allowing enough room for future construction of a 15,000-sf building. Boyle indicates the buyer has no immediate plans to break ground on a new structure, however.
The deal made sense for the buyer, Boyle continues, because Snegg & Snegg owns similar types of office/industrial properties in California. "This is the buyer's first purchase in the Phoenix area," Boyle says, adding the buyer doesn't have any plans, as of now, to acquire additional Phoenix-area properties. For the time being, Snegg & Snegg's plan is to upgrade the property and use it as a long-term hold, he says.
In the meantime, "the seller had acquired the property about two years ago and will exchange the proceeds to similar types of properties," Boyle tells GlobeSt.com. The replacement property has yet to be identified, he says.
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