"We liked the location, we liked the tenants and the stability of the property," Stephen Silla, a senior vice president with Bedford, tells GlobeSt.com. "The office market is fairly stabilized. We like buying properties like this with good credit and long-term tenants."
The fully leased 9060 E. Via Linda sits on about eight acres close to Loop 101. Bedford paid approximately $156 per sf in the deal and expects a first-year cash yield of 9.06%. The building is home to two tenants: Century Insurance and PCS Health.
Bedford's preferred equity offering of 2.4 million shares generated about $60 million, part of which was used to finance the East Via Linda acquisition, Silla says. The firm plans no major improvements to the building in the near future.
Summit Commercial Properties acquired the building in early 2003 from Mack-Cali Realty Corp., as part of the $43-million disposition of its entire Arizona portfolio.
Bedford's acquisition takes the REIT's office and industrial holdings in Arizona to 24 properties and more than 1.8 million sf. "The purchase of this property is consistent with our strategy of acquiring stabilized assets in markets with which we are familiar," CEO Peter B. Bedford says in a press release.
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