"They saw what we saw," Joe Porter, a senior vice president at CB Richard Ellis Inc. in Phoenix, tells GlobeSt.com about the all-cash trade of North Loop 101 Business Center. "We thought it was a good opportunity for the seller. It was a good price, but it also afforded the buyer an opportunity for risk. When you throw in land that creates value."
The San Francisco-based adviser's acquisition consists of three industrial buildings with 167,776 sf, built three years ago by Voit Development Co. of Woodland Hills, CA. The seller's plan is to pour the gain into other markets, according to Porter.
Six offers rolled in for 960 W. Behrend Dr. during a four-month marketing period. Escrow lasted about 75 days.
Rreef had excluded a 47,000-sf building and the extra land from the deal, but changed its mind and is now toying with a future plan to build a two-story office building at the southwest corner of 7th Avenue and Loop 101. Porter says the building will range from 90,000 sf to 120,000 sf, but it's probably going to be late 2005 before work begins.
The existing product has about 72,000 sf vacant, but Porter says talks for two large leases should close in the coming months. Average rent for the multi-tenant buildings hovers $1 per sf. "Rreef bought on low-6% cap on existing income. That included the vacancy and the land," says Porter, who along with CBRE's Pat Feeney and Dan Calihan negotiated the sale.
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