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Sale of Amazon Distribution Center Sets Commercial Real Estate Record for Square Footage Price
Scottsdale-based Globe Corporation recently completed the sale of the highest per-square-foot price industrial building in the Phoenix market since the last market peak with the sale of its Amazon distribution center in Chandler.
In August, Globe Corporation closed escrow on the sale of 550 E. Elliot Road, which commanded a selling price of $10.75 million for the 89,545-square-foot building recently occupied by Amazon. Will Strong, Mike Haenel and Andy Markham of Cushman & Wakefield represented Globe Corporation in the sale, ultimately locating Industrial Property Trust as the buyer.
George Getz, President and Co-Chief Executive Officer for Globe Corporation, said he was informed the $120-per-foot selling price set a new record for industrial buildings in the Phoenix market.
“Will ran the process with precision and absolutely cleared the market for us,” Getz says.
Strong said Globe’s approach to quickly handling the transaction and the building’s attractiveness as an investment property were key factors.
“We were excited at the amount of interest in the property,” Strong says. “George Getz and Mike Olsen at Globe were incredible to work with and have a great team behind them. It’s a complicated process to sell a building while the tenant is still finalizing the build-out and its operating process in the facility; but it all went off without a hitch.”
It was the second successful sale in as many months for the investment company, which counts real estate holdings in five states but has its main focus on the key submarkets surrounding the Phoenix and Chicago metro areas, where Globe maintains local offices.
In the second sale, current tenant JP Morgan Chase Bank purchased its Old Town location at 4031 N. Scottsdale Road, from Globe Corporation for $9.25 million. Originally built in 1958 for Valley National Bank, the sale of the building, which sits on the southwest corner of Scottsdale and Indian School roads, commanded a per-square-foot price of $701. Kevin Calihan with CBRE represented Chase in the transaction.
Michael J. Olsen, Chief Financial Officer for Globe Corporation, said both deals represent how his company likes to approach its business.
“We believe in cutting through the bureaucracy and executing deals – whether they’re acquisitions, leases or joint-venture opportunities – quickly,” Olsen says. “Our local leadership and our commitment to delivering when we say we will deliver are cornerstones of our approach and we believe lead to better business relationships and opportunities in the marketplace.”
In late August, Globe Corporation was on the buying end of an even larger transaction, exchanging its Chase Branch sale proceeds (plus additional cash) for 101 Corporate Center, located at 19820 N. 7th Street, in Phoenix for $11.8 million. Olsen said Globe Corporation chose the two-story, Class A office building for its prime Loop 101 location and quick access to Desert Ridge and Scottsdale with a more competitive price point. Marcus Muirhead with Lee & Associates | Arizona represented the seller.
Founded in 1901 in Chicago, Globe Corporation is a family-owned investment company focused on real estate, asset management and private equity. Getz said Globe is always looking for solid investment opportunities with a primary focus on value-add or stabilized industrial properties.
“Having exchange proceeds to place makes it a little more urgent to find something” Getz says. “But we don’t ever let the potential tax liability drive our underwriting process. We would always rather pay taxes than make a bad deal.”
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