Transactions of Chase Bank, 101 Corporate Center & Amazon

Globe Corporation’s recent activity includes the sale of a Chase Bank, purchase of 101 Corporate Center, and an Amazon building sale.

Transaction #1:

Sold Chase Branch Property to JP Morgan Chase – Sale closed on 6/23/2017

Location:                              4031 North Scottsdale Road, Scottsdale, AZ 85251 (SEC Scottsdale Rd and Indian School Rd)

Seller:                                   Globe-Chase Property, LLC (Globe Corporation)

Buyer:                                   JP Morgan Chase Bank

Tenant:                                JP Morgan Chase Bank

Property Type:                  Bank Branch with detached drive-thru (half City block in old town Scottsdale)

Date Constructed:           1958

Building RSF:                      13,948

Site Size:                              1.08  Acres / 46,803 SF

Occupancy:                         100%

Sales Price:                         $9,250,000 plus $533,000 in assumed costs

Sales Price PSF:                 $701

Cap Rate:                             4.4%

Seller Broker:                     None

Buyer Broker:                    Kevin Calihan – CBRE

Other Details:  Globe originally purchased the property from Valley National Bank on 9/1/1989 for $3 million.   Site had great redevelopment potential but too expensive to relocate Chase, redevelop the site and put them back.  Significant unsolicited offer price drove sell decision. Globe put the proceeds into 1031 exchange and used funds to purchase 101 Corporate Center for $11.8M.

Transaction #2

Purchased 101 Corporate Center from Cavan – Purchase closed on 8/22/2017

Location:                              19820 North 7th Street, Phoenix, AZ 85260 (SWC 101 Fwy and North 7th Street)

Seller:                                   101 Corporate Center, LLC (Cavan Real Estate)

Buyer:                                   Globe-Chase Property, LLC (Globe Corporation)

Tenants:                              Multiple

Property Type:                  Multi-Tenant 2 Story Class A Office

Date Constructed:           2001

Building RSF:                      77,037

Site Size:                              5.67  Acres / 246,901 SF

Occupancy:                         94%

Purchase Price:                 $11,800,000

Purchase Price PSF:         $154

Cap Rate:                             7.8%

Seller Broker:                     Marcus Muirhead – Lee and Associates

Buyer Broker:                    None

Other Details:  Globe deferred substantial gain from Chase Branch sale.  Office building is strategically located on a full 101 interchange.  Gross income of $19 PSF has potential for growth.  Sub market vacancy is very low with limited competition and closest competing office rents at $24 PSF.  Property has quick access to Desert Ridge and Scottsdale where office rents are substantially higher.

Transaction #3:

Sold Amazon building to Industrial Property Trust (IPT) – Sale closed on 8/21/2017

Location:                              55 East Elliot Road, Chandler, AZ 85255 (North side of Elliott east of Arizona Avenue)

Seller:                                   Globe 2007 PLB, LLC (Globe Corporation)

Buyer:                                   IPT Chandler DC, LLC


Property Type:                  Class A Industrial – Last Mile Distribution Center

Date Constructed:           1997

Building RSF:                      91,204 per lease / Reduced to 89,545 after office mezz demo

Site Size:                              4.83  Acres / 210,565 SF

Occupancy:                         100%

Sales Price:                         $10,750,000

Sales Price PSF:                 $120

Cap Rate:                             5.2%

Seller Broker:                     Will Strong, Mike Haenel, Andy Markham – CBRE

Buyer Broker:                    None

Other Details:  Globe originally purchased the property from Savage Universal 1/26/2000 for $4.7 million.  Savage moved out at the end of the lease term February 2015.  Globe restored to building to Class A condition, held out for a single tenant user and leased the building to December 2016 for a 5 year lease term with extension options.   Decided to take some profit off the table and sell the building due to significant institutional buyer interest for high-quality industrial assets leased to public companies, particularly Amazon.  Globe put the proceeds into 1031 exchange and is looking for other opportunities to defer the substantial gain.

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