Search
 

New Phoenix Buyer Sets Up $17M Midtown Play

PHOENIX-Adler Realty Investments will roll out an incentive-laden leasing strategy to fill 2600 Tower, a 323,607-sf, class B office building with a 65% occupancy. Whatever it takes to get "warm bodies in the space" will be done, the broker vows.

By Lee Simmons | Updated on July 08, 2004

PHOENIX-Investors willing to take on risky office properties are focusing on Phoenix’s Midtown submarket, where mostly class B assets are flaunting free rent, higher broker commissions and high tenant improvements as incentives to retain tenants. A California investor makes his market entrance with the $17-million purchase of the 2600 Tower, a 323,607-sf, class B office building along North Central Avenue.

“For this market, overall it has really been hurt over the last few years. There’s a lot of buildings that have a lot of vacancy. This property has some of the highest vacancies of the market,” Robert Rizzi, an executive vice president with Broad Street Advisors LLC in New York City, tells GlobeSt.com.

Adler Realty Investments Inc. of Woodland Hills beat 14 competing offers on the 20-story office building, which received healthy interest from institutional and private investors alike. SOFI IV SIM Office Investors II LP, a fund belonging to Greenwich,CT-based Starwood Capital, had the building on the market about 10 months, taking it off briefly during the Christmas holiday. One purchase contract fell out and two major tenants left the 2600 N. Central Ave. property, Rizzi says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.