According to Patrick Harlan, director of Phoenix-based Cushman & Wakefield of Arizona Inc., Paramount's owner, from the start, had intended to purchase the property at 550 W. Southern Ave. "I think he was coming out of another lease at the time and wasn't ready to buy, but he wanted to reserve the right to purchase the building when we structured the lease for him a couple of years ago," Harlan tells GlobeSt.com.
Harlan, along with C&W Arizona's Steve Sayre and Lindsay Erickson, represented Paramount Windows in the negotiations. Pat Feeney and Dan Calihan with CB Richard Ellis Inc. in Phoenix were on hand for the seller.
Harlan adds the lease and purchase agreements were two separate transactions, with the quoted leased rate averaging 30 cents per sf, triple net per month. "The sales price was a fixed price we negotiated at the start of the lease," Harlan explains.
Paramount, which manufactures windows for the new home construction market, has grown quickly because of the booming Phoenix population, Harlan says. "They entered this transaction with the understanding that the building would satisfy their business growth in the years to come," he adds.
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