PHOENIX, AZ – Phoenix-based Sperry Van Ness I MVP CRE Advisors has completed the $7.4 million sale of a 23,485-square-foot General Services Administration (GSA) building in Sierra Vista, Ariz (top left photo). The buyer is New York-based real estate REIT that acquires single-tenant, freestanding properties throughout the U.S.
“We’re seeing a definite up-tick in investor appetite for government-leased assets,” said Mark Phillips, Managing Director of SVN I MVP and broker for the Sierra Vista transaction. “GSA properties are backed by the Federal Government in the same way a Treasury Bond is, so they often act as both a safe haven for an investor’s capital and a conduit for long-term, lower-risk rental income. In this economy, that is an attractive combination.”
The Sierra Vista property is a former Lazy Boy showroom that was renovated and converted into a LEED Certified “Silver” office building. It is 100 percent occupied by the Department of Interior on a 10-year lease with the U.S. Federal Government. According to its 2009 financial report, the GSA renews its first-time leases 96 percent of the time.
The facility will be used as the National Business Center for the Department of Interior (the purchasing agent for the DOI). The DOI has been operating in Sierra Vista for more than 20 years, during which time it has experienced steady and managed growth. The new building will more efficiently house DOI operations and support its continued growth in Sierra Vista.
“GSA property transactions can be very complex, but that has not deterred demand,” said Phillips. “Even with our experience in the sector, we spent several months vetting two unsuccessful buyers for the Sierra Vista assignment. We then identified the third buyer and closed in just 45 days for all cash. I expect to close several other GSA buildings year’s end.”
For more information, please, visit http://svnmvp.com/.
Contact:
Stacey Hershauer
focusAZ
Marketing & Public Relations
(480) 600-0195
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