Mutual respect and perseverance between all parties leads to an off-market industrial land deal. The Deer Valley submarket is one of the hottest spots in the Phoenix Scottsdale Metropolitan Statistical Areas (MSA). Some of the highlights of this area are the Fintech Corridor along I-17, TSMC’s new semiconductor plant going in at the intersection of I-17 and 303, as well as an evolving residential area with popular hiking and mountain biking in the communities that make up the 57-square mile Deer Valley Village. High paying job opportunities and quality of life have made the Deer Valley industrial submarket and land values skyrocket. Just recently, one of the last prime industrial lots of 5.25 acres of A-1 zoned land sold for $4,816,000 (+/- $21 PSF).
Ian Turner, a seasoned commercial real estate broker, launched Commercial Industrial Arizona Advisors (www.CIA-Advisors.com) several months ago, in 2021, and represented the seller in the transaction. The seller, One East Pinnacle, LLC sold to DV 20 AC Limited Partnership. The seller, Gary Beyschau, purchased this piece of land many years ago to hold for a potential new company he considered forming after selling his business to a national construction company. Beyschau has transformed himself into a real estate investor and has developed income-producing multi-tenant industrial products. Beyschau said, “Ian has been an outstanding support person for our entire six-year relationship. His efforts to support and educate have been spot on.”
The property is located at 75 W Pinnacle Peak in Phoenix. This is the one of the last parcels of A-1 zoned land that can be developed in the industrial submarket area. Robert Lundstedt of Daum Commercial, who specializes in land in the area, had repeatedly inquired if the seller would be willing to sell and, if so, at what price. Ian Turner took an offer and terms that he believed to be acceptable, to his best client. Lundstedt submitted a letter of intent the very next day. “Ian has been a part of our team, contributing and sharing his perspective wherever it’s relevant,” Beyschau continued. At the end of the due diligence period, the first buyer dropped the deal without notifying the buyer’s representative. When Turner informed Lundstedt of the situation, Lundstedt stated, “Hold on, I will bring you another buyer immediately.” Hence, the sale for over $4.8M.
Beyschau was considering developing the site due to the high demand for industrial space in the area. An offer at this price was one that he could not pass up, based on the perceived volatility of the market risk due to Covid. Beyschau continued to say that Turner has been a big part of their success, “You won’t be disappointed if you get him on your team!”
CIA Advisors’ Ian Turner paid much respect to Daum’s advisor, Bob Lundstedt, calling him a “tenacious broker,” and appreciating how respectful and cognizant Lundstedt was of the relationship that Turner had with his long-time client. The key to the sale was simply mutual respect between brokers, and their trusted relationships with their clients. “I am elated that this deal came through for both parties. It is with perseverance, patience, and trust that this deal was able to close,” said Turner.
This is the second large land transaction Turner has completed in the Deer Valley submarket in 2021. “This has been my best Pandemic Year so far!” stated Turner. In early 2021, while still at his previous employer, Turner had assembled and then sold a +/- 10-acre piece of land. That land was purchased by DR Horton and is currently under construction along I-17, just north of Jomax Road.