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6/13/18
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Biltmore RE LLC recently acquired an 8.5k sf, single-tenant office building in Phoenix’s Camelback Corridor in a $3.1 mil ($365/sf) transaction. The Class A building, located 2701 East Camelback Rd, traded in an absolute NNN leaseback to the seller, Arciterra Companies, a real estate investment and development company.
The building is located close to high-end shopping, restaurants, and a vibrant nightlife. It has one of the densest daytime-business populations in Phoenix.
Jenette Bennett with Kidder Mathews represented Biltmore in the transaction.
“This was a rare sale and leaseback to a strong and well-established company with a complex business,” said Bennett. “Unlike most STNL national tenant deals, it took time and resources to research and gain a clear understanding of the numerous, nationwide entities they owned,” she said.
Businesses are trending toward sale and leaseback transactions due to the tax implications of owning real estate instead of carrying a lease expense on the books. Tenants are reinvesting in their business or expanding to new locations, creating previously unrealized opportunities for those interested in long-term, absolute NNN real estate investments.
“The Camelback Corridor has never been stronger in terms of lease rates and occupancy,” said Bennett. “The frequency of owner-users executing on the sale and leaseback option is likely to increase over the next several years,” she said.
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