24,100-SF Retail Asset Sells for $320 per SF

GILBERT, AZ-A 1031 exchange investor from La Canada Flintridge, CA, placing the first offer on the table, has grabbed title to the 24,128-sf Western Skies Village for $320 per sf and a 6.8% cap rate. To shore up the deal, the buyer came within $150,000 of the $7.85-million ask for the 94%-leased piece of retail in southwest Gilbert.

“With the assumption of the loan, it was a strong offer,” says David Guido, senior associate in Phoenix for Marcus & Millichap Real Estate Investment Services. He tells GlobeSt.com that the buyer, Georges Ghaby, assumed a $5-million loan with seven years to go and a fixed-rate interest of 5.4%. Well Fargo Bank holds the note for Western Skies Village at 1534 E. Ray Rd.

David Goldberg of Phoenix had been looking for a buyer nearly six months when he gave the listing to Guido and his partner, associate Joseph Compagno. As the loan assumption process advanced, the capital markets and credit crunch came into play. “The assumption of the loan allowed the investor to know what he was getting into with the loan,” Guido points out.