GlobeSt.com EXCLUSIVE: JV's $52M Scores Office Portfolio Win

PHOENIX-Crown West Realty LLC and St. Paul Properties have purchased 11 buildings in the Arizona Business Park for $52 million. The deal adds 440,000 sf of fully occupied office and flex-office space to the new joint venture’s portfolio.

“The opportunity in this deal was the ability to buy the buildings at their current rents and know that we’re going to end up with good leasing opportunities in two of the nicest buildings in this area in a short period of time,” Richard Rollnick, president of the Spokane, WA-based Crown West Realty, tells GlobeSt.com.

The 50-50 joint venture acquired the buildings from Estes Samuelson LLC of Phoenix, which developed them between 1987 and 2000. Compass Bank of Birmingham, AL, provided $17 million in acquisition funds at a Libor-based rate and the balance funded through both partners’ equity contributions, according to Rollnick. In addition, two loan assumptions were required before the deal could close–expanding escrow to 11 months.