Located at 1002 S. 63rd Ave. on the northwest corner of 63rd Avenue and Buckeye Road in southwest Phoenix, the building is 100 percent leased to three tenants: General Nutrition Center (GNC), Lagasse Sweet and the Arizona Department of Economic Security. It features dock-high loading capability with easy truck maneuverability, along with proximity to Interstate 10 for convenient freeway access.
Barry Gabel and Mindy Korth of CBRE's Phoenix office handled the transaction for both parties. Gabel tells GlobeSt. that 1990s-era building was on the market for 45 days and received eight offers.
"This is a stabilized asset in good condition that is fully leased to credit tenants," Gabel notes, adding that the building's lease roll from two to six years. "There aren't a lot of buildings like this one on the market. For that reason, we had a lot of interest."
Gabel notes that Duke Realty purchased the building for about $35 per square foot – below replacement cost. "With no new development on the horizon, investors are now looking at strategic acquisition opportunities for existing buildings in the Phoenix area, and Duke saw an opportunity to add to its portfolio."
As part of the deal, Duke Realty assumed a $4.6 million mortgage loan with a life insurance company. "Duke had a good relationship with the lender, which worked out great for the loan assumption," Gabel notes.
In addition to this recent acquisition, Duke Realty owns properties in Buckeye Logistics Center and Goodyear Crossing Industrial Park in suburban Phoenix.
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