The sale puts $20.5 million into the pockets of Dallas-based Presidio Investments, which acquired the three-story building when it purchased Washington, DC-based CarrAmerica Realty Corp.'s metro Phoenix office portfolio for nearly $100 million in 2001. The REIT developed the building at 444 N. 44th St. in 1998.
Four Gateway was 95% occupied at the time of sale. Norfolk, VA-based Value Options occupies about 66% of the building. The firm's lease expires at the end of 2009, says Glenn Smigiel, a first vice president with CB Richard Ellis Inc.'s Phoenix office. The seller's CBRE team also included Steve Brabant and Bob Young in the San Diego office. Smigiel tells GlobeSt.com that Four Gateway received a dozen offers.
"The building offers quality construction, a flexible design and is in a great long-term location," Smigiel says. "Younan is buying the building at below replacement cost with good tenants. As the market continues to tighten and get better, the building is well positioned to take advantage of an upside market."
Four Gateway is Younan's third office purchase in Phoenix and its first acquisition outside the CBD. With the acquisition, Younan Properties is the largest office-building owner in the Valley with a portfolio of nearly 820,000 sf. It also owns Meridian Bank Tower and Central Plaza. According to Younan Properties, the firm plans to grow the Phoenix office portfolio to 1.5 million sf feet by the end of the first quarter.
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