The two assets were acquired by a single investor and leased back to the sellers
PHOENIX, ARIZ. – DAUM Commercial Real Estate Services has directed the sale-leaseback of two adjacent industrial buildings in the Deer Valley submarket of Phoenix, Arizona, on behalf of a single buyer, Greenwood & McKenzie, a private real estate investment firm based in Tustin, California. DAUM also represented the sellers, Roll Shutter Systems and Swisher HVAC.
This transaction represents the unique strategy of identifying creative solutions to assemble investment assets for commercial real estate buyers, implemented by Chris Rogers and Trevor McKendry, both Vice Presidents at DAUM’s Phoenix office.
“Our buyer was in a 1031 exchange and was seeking the right investment property to trade into,” says Rogers, who directed the acquisitions with McKendry. “In the ever-tightening Deer Valley submarket, our team has been able to strategically increase the value of acquisitions due to our in-depth, and day-by-day, hands-on approach.”
In this instance, Rogers and McKendry negotiated with two separate sellers, both owner-users with shared site access. They recommended that to achieve full value, both assets should be coupled together to create one controlled business park environment.
The properties, totaling 30,676 square feet, were acquired and immediately leased back to the sellers. Roll Shutter Systems and Swisher HVAC plan to continue to occupy the buildings long-term, providing steady in-place cashflow for the buyer.
“This is a strong addition to Greenwood & McKenzie’s growing Phoenix portfolio,” says McKendry. “We have been fortunate to support this firm in several transactions in the Phoenix region. As an experienced owner, Greenwood & McKenzie recognizes the long-term investment value in this region based on the strength of local market fundamentals.”
Vacancies for industrial buildings under 20,000 square feet in the Phoenix market have decreased from 8.9 percent to 4.5 percent within the past 5 years. The region has also demonstrated strong population and job growth, with 62,100 new jobs added since the second quarter of 2017.
“Deer Valley is the most in-demand industrial submarket in the area, and there are very few properties available for sale,” the team continues. “Based on our in-depth knowledge of the market, we were able to identify these ideally-located properties and arrange a transaction that was a win for all three parties.”
Situated on 1.88 acres, the properties offer Deer Valley Road frontage and close proximity to the 101 Freeway and Interstate 17. The assets include:
- A 14,490 square-foot building located at 21633 N. 14th Avenue in Phoenix, Arizona. 10,631 square feet of the property was leased back to the seller, Roll Shutter Systems, and the remaining 3,859 square feet was leased a month after closing.
- A 16,186 square-foot building located at 21639 N. 14th Avenue in Phoenix, Arizona that has been leased back to the seller, Swisher HVAC.
The buildings were sold for a total purchase price of $3.775 million.
In 2017, DAUM Commercial also helped Greenwood & McKenzie acquire a nearby 61,000 square-foot, Class A industrial property in the Deer Valley submarket located at 2550 E. Mohawk Lane, which Rogers and McKendry are currently marketing for lease.
About DAUM Commercial
DAUM Commercial is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management. Founded in 1904, DAUM focuses on longstanding client relationships and draws upon its century-long track record to deliver steadfast insights and proven results to clients across the U.S. DAUM has ten offices throughout Southern California and Arizona. More information is available at www.daumcommercial.com.