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Breakthru Beverage Facility in West Phoenix Sells for $33.5 Million

Posted by   /  November 18, 2016  /  No Comments

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(Editor’s note: News releases are published unedited unless they contain factual errors.)

Sale Reflects Dynamic Industrial Market in West Phoenix

Colliers International in Greater Phoenix has negotiated the $33,550,000 sale of a 452,271-square-foot industrial facility in West Phoenix occupied by Breakthru Beverage Group.  The sale represents one of the highest prices paid per square foot in the market, reflecting the strong dynamics of the West Phoenix industrial submarket.

“The West Phoenix submarket is experiencing a record year in absorption and rental rates are increasing in most sectors,” says Don MacWilliam, executive vice president of Industrial Properties at Colliers International in Greater Phoenix.  “Vacancies have dropped and rents are rising as our city’s growth has absorbed much of the inventory left vacant in the recession.  Built space is becoming scarce and infill land on which to build is being depleted.  While we are not completely recovered, it is a very exciting time in the Valley’s real estate market.”

MacWiliam and his partner, Payson MacWilliam, negotiated the sale transaction.  An affiliate of Cohen Asset Management purchased the property in a double escrow transaction from Breakthru.  Breakthru acquired the property through a 2011 purchase option agreement with owner Crexus AZ Holdings 1, LLC.

The Breakthru Beverage property has an irreplaceable location at 1115 S. 47th Avenue, fronting Interstate 10 at 43rd Avenue.  Breakthru Beverage Group, the largest wine and spirits distributor in Arizona, was created in June 2016 with the merger of Breakthru Beverage and Alliance Beverage.  Alliance Beverage has occupied the building since 1999 and Breakthru Beverage has signed a new 15-year lease with an affiliate of Cohen Asset Management (Brad Cohen and Branden Delf.) Cohen Asset Management now owns and controls nineteen buildings in Greater Phoenix totaling more than 3.76 million square feet of space.

“This asset hit the market at the perfect time when cap rates were compressed and the property offered a 15-year lease with a strong credit tenant,” says MacWilliam.  “The sales price clearly illustrates how strong the market is and how far we have come in the past five years.”

The state-of-the-art Breakthru Beverage facility features 30’+ clear heights, an ESFR sprinkler system, and 50,000 square feet of office space. The MacWilliam team negotiated Crexus’ acquisition of this facility and an adjacent 187,611-square-foot building in 2011. The MacWilliams are currently negotiating with another purchaser for that additional property.

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About Colliers International Group Inc.

Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn.

Colliers International in Greater Phoenix has served clients locally and globally for more than 35 years.

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  • Published: 3 years ago on November 18, 2016
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  • Last Modified: November 18, 2016 @ 8:47 am
  • Filed Under: Real Estate News Briefs

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