"About 48% of the complex rolls over in 2009," says Payson MacWilliam, senior vice president with Collier's International's Phoenix office. He and partner Don MacWilliam represented seller Mountain West Industrial Properties LLC. The broker tells GlobeSt.com that the in-place leases are 25% to 30% below market rate for the 100%-leased complex at 405 N. 75th Ave.
According to Payson MacWilliam, the seller brought the holding to market after owning it two years because the timing was right for the product type. Vacancies in the Southwest Valley are continuing to fall while rents are steadily moving up. In a second-quarter report, the submarket's 626,590-sf flex inventory had a 12.9% vacancy. Its rents have increased 3.2% in the past year.
As a result, MacWilliam says the complex attracted many inquiries in a semi- off-market scenario. Mark Detmer and Robert Mills with Cushman & Wakefield of Arizona Inc. brought BlackRock to the table. MacWilliam says the new owner won't need to do anything to improve the six-year-old complex.
"It's in a very well-located area, quarter of a mile south of Interstate 10 and with good visibility on 75th Avenue," MacWilliam adds. Tenants include Corporate Express US Inc., Basic Components Inc. Gift Box Corp. and Kellogg Supply Inc.
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