An FM station in the Flagstaff AZ Nielsen Audio market was bought out of receivership in 2009, and is now on its way to a new owner in a deal that confirms the wisdom of the original buyer’s investment. Broker: Robert O. Mahlman Inc. (seller)
The station is KZGL-FM, actually licensed to Flagstaff.
The seller is Towers Investment Trust Inc., headed by President Bill Brothers.
The buyer is Murphy Air LLC, headed by Managing Member Rick L. Murphy.
The price is $850,000, including $25,000 escrow, $75,000 cash at closing and a $750,000 promissory note.
The buyer has stations in Arizona and Nevada. This will mark its entry into the Flagstaff market.
The return on investment for Tower on a face-value basis is excellent. Tower bought the station out of bankruptcy back in April 2010 from brokerage Kalil and Co.’s Kalil Holding Group subsidiary, which was acting as receiver for Walker Radio. Tower paid $350,000.
About a month later, Tower struck a deal to swap the station to Grenax Broadcasting in exchange for a Chino Valley AZ CP, but that deal never made it to the finish line.
KZGL-FM is a Class C3 on 103.7 MHz with 560 W @ 1,959’. The station does a fine job of covering the market.
