1031 EXCHANGE BUYER CROSSES OVER TO NNN PRODUCT AT LIST PRICE
Single Tenant Triple-Net
2653 West Guadalupe Road | MESA, AZ
SALES PRICE: $1,920,000
SELLER: Great Western Developers, LLC
BUYER: Anthony Leparulo Separate Property Trust
PRICE PER SQ. FT.: $246.88
YEAR BUILT: 1984
LOT SIZE: 0.53 Acres
NET RENTABLE SQ. FT.: 7,777
FINANCING: Desert Financial Credit Union
FIRST LOAN AMOUNT: $1,030,000
CLOSE OF ESCROW: 02/28/2020
SELLER PROFILE | TRANSACTION GOALS
This selling partnership purchased the property in 2005 and sold their business in 2018. At that time a new 10-year lease was signed with an operator who had deeper pockets and more liquid investors who would immediately enhance and upgrade the radiology business and position it for long-term growth. This included improvements to the interior of the space and to the production and sophistication of the medical machinery. All this would be completed at the tenant’s sole expense. They own eight other sites in Arizona.
BUYER PROFILE| TRANSACTION GOALS
This local 1031 Exchange Buyer was coming out of multiple dispositions in 2019 including an apartment building in Youngtown, Arizona. This became the second net leased exchange property in the buyer’s Arizona portfolio. This investor relied on our extensive market knowledge of product types and allowed us to help them strategize to take advantage of significant investment arbitrage – selling at a low cap rate and purchasing a significantly higher and safer yield. Having owned similar investments, he was also looking forward to less management intensity.
PROCESS AND RESULTS
Having already owned a retail property, the switch from apartments to NNN did not deter the buyer from submitting a full price offer with very aggressive contract terms. We were able to identify this well-located property within his 45-day 1031 Exchange window and submit an offer with the help of Marcus & Millichap’s internal inventory system. The seller was represented by a retail brokerage team in the Marcus & Millichap Phoenix office, which made for straightforward communication; both buyer and seller were comfortable with the Marcus & Millichap contract form and we utilized a well-known and trusted loan broker to finance the property.