Lincoln Property Company assisted Harvard Investments on their first commercial real estate purchase in the Valley. The asset consists of two adjacent industrial buildings in the West Valley totaling approximately 100,000 square feet. The buildings are located at the northwest corner of 35th Avenue and Washington Street in Phoenix, Arizona in the very active southwest valley industrial submarket and less than a mile south of Interstate-10.
Craig Krumwiede, President and Director for Harvard Investments, has focused much of his career in residential land development. David Krumwiede, Executive Vice President for Lincoln Property Company, has spent his career in commercial development, acquisitions and property management. Harvard’s acquisition is the first time in which the two Valley brothers have worked together bringing a combined sixty years of experience in Arizona real estate.
“We were both influenced by our father, who worked for Del Webb here in the Valley,” said Craig Krumwiede, President and Director, Harvard Investments. “Craig and I have always had our own distinct niches in the real estate industry and it’s great to be able to combine our real estate expertise and work together on a project.” said David Krumwiede, Executive Vice President, Lincoln Property Company.
The northern freestanding building on the property, approximately 57,000 square feet is currently available. The building is undergoing a complete renovation which will include the build-out of a 2,500 spec office suite, installing a new roof, repaving and restriping the parking lot, upgrading the landscaping and new interior and exterior paint schemes. The renovations will be managed by the Lincoln Property Company’s Senior Construction Manager, Douglas Klocke.
The southern freestanding building on the property is home to the California-based warehouse retailer, Express Furniture Rental. Express Furniture Rental is the 4th largest furniture rental company in the country and currently operates in eight major markets covering the entire West Coast. The company is focused on servicing the Temporary Housing Industry.
Lincoln Property Company, which manages more than 6 million square feet in Arizona and Nevada, will provide the management services for the 100,000 square foot acquisition.
“This property provides us with an opportunity to showcase all of Lincoln Property Company’s strengths: our ability to redevelop, reposition and manage while focusing on adding value to our client,” said Alisa Timm, CPM, Director of Management Services, Lincoln Property Company.
Steve Grossoehme with Rein and Grossoehme represented the buyer through the transaction.
Financing assistance was provided by Jim Pierson and Keaton Merrell with Legacy Capital Advisors.
This was Harvard Investments first commercial real estate purchase in the Valley . The seller was Lindquist Development Company, Inc., an Oregon Corporation. The sales price was $3,050,000, which equates to $32.48 per square foot.
Securing $2,415,000 in non-recourse bridge financing, the sponsor plans to complete an extensive renovation of the project and lease the vacant building. Steve Grossoehme of Rein & Grossoehme Commercial Real Estate negotiated the transaction. David Krumwiede, Executive Vice President of Lincoln Property Company (LPC), put the deal together with Harvard and LPC will handle leasing and property management.
“Facing a firm deadline with the purchase contract, we were able to quickly identify the best financing source and close the acquisition loan in only 24 business days from loan application.” stated Jim Pierson, Principal at Legacy Capital Advisors.