2802/2822 E. Greenway Rd.
|Building Area||23,000 SF|
|Price Per SF||$89.78|
|Cap Rate (Actual)||7.65|
|Cap Rate (Proforma)||7.14|
The subject property is a retail/office/warehouse center that was built in 1982. There is a frontage building that is comprised of warehouses with retail/offices facing Greenway and convenient drive-up parking. The suite on the east end of this building is 2-stories. The back building is only warehouse space. The design of the front building allows the configuration of the units and access to the warehouses from the front offices to be adjusted as needed. The yellow arrows on the following site plan show how the units are currently joined. There are also two owned storage containers that are leased to one of the tenants. The front parking lot was resurfaced and the back parking lot was resealed in 2019.
The center is value priced at $91/sq. ft.- well below replacement cost. The lease rates are low and average $9.50/SF on a modified gross basis and seven of the tenants have utilities included. This center rarely has any vacancy. 51% of the tenants have been there over ten years. 73% of the tenants have been there over five years. The tenants have been there an average of 10.1 years. Several tenants have expanded and taken more space over the years, which is a testament to their success at this location.
This central Phoenix location offers easy access to the city via the freeway system. The SR51 Freeway is about one mile to the east. The 101 Loop is about three miles to the north and the I-17 Freeway is a little over five miles to the west.
The center is a unique property, especially in this northeast Phoenix location. There just aren’t many options in the area for tenants looking for this kind of space. There are only 10 similar properties in a 3-mile radius with a total square footage of only 120,479. All but one of those properties are 100% occupied and that one only has 5,000 sq. ft. available, representing a 4.2% area vacancy rate.