The Last of the Value-Add?
CBRE's Mike Parker may have just helped sell one of the last value-add industrial plays in Phoenix for some time. (No word on value-multiplication or value-fractal properties.)
Cali-based Turner Real Estate Investments picked up Southbank Business Center, a 108k SF flex industrial complex off E Harbour Drive in Phoenix. While terms of the deal were undisclosed, Mike says the property was a clear value-add play. CBRE's Evan Koplan, Luke Walker, Dave Carder, and Eric Schultz all brokered the deal.
“Quite frankly, you're probably seeing more core now than value-add. Value-add is just about done,” Mike tells us. And that is encouraging current industrial landlords to hit the market with their properties in a perfect storm of low vacancies and hungry investors. (Get your bibs, it's a feeding frenzy.) “I think you got some people who have been sitting on product and waiting for occupancy to get there,” he says. One such owner is Dalfen American Corp. Mike just got the listing from the Canadian company to sell its Eastpoint Business Center, a 77k SF warehouse on W Washington Street that Dalfen purchased out of special service in 2012 for $3.3M.