New 604,500-SF Asset Changes Hands for $30M

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PHOENIX-The finish was barely dry on the 604,500-sf Buckeye One when it was sold to Duke Realty Corp. for $30 million. The empty distribution center was developer Alter Group’s first construction in its 162-acre Buckeye Logistics Center, but won’t be its last.

Patrick E. Gallagher, senior vice president for the Chicago-based developer, says his company’s method of staking out land, building on it, then selling upon completion rather that lease-up isn’t unusual, especially for large, bulk distribution projects similar to Buckeye Logistics Center. “We’ve done this in California, where we’ll sell these to pension funds, with leasebacks on occasion,” explains Gallagher. “But it’s different here, being that a REIT bought the building.”