Jim Fijan, an executive vice president of CB Richard Ellis Inc., tells GlobeSt.com that Gainey Center II received 12 offers. "It's the nicest building in Scottsdale in terms of quality and construction," says Fijan, who teamed with CBRE's Tom Adelson, Jerry Roberts and Kevin Calihan to represent the seller, San Francisco-based Maier, Siebel & Baber.
Located at 8501 N. Scottsdale Rd. in North Scottsdale, Gainey Center II has traded hands three times in just five years. It was developed in 2000 by Opus West Corp., which sold it after completion to a partnership between Walnut Creek, CA-based ZKS Real Estate Partners LLC and San Francisco-based Carlyle Group for $22 million. In June 2002, the partnership sold the asset to Maier, Siebel & Baber for $32 million.
Gainey Center II is 95% occupied to names like Chicago-based Bank One and New York City-based UBS Financial Services Inc. "It has a quality tenant mix," Fijan stresses. "None of the leases roll for the first three years, which was attractive to the buyer." The building leases for $28.50 per sf to $29.50 per sf.
Fijan says KBS Realty Advisors assumed a $20-million loan from Prudential Financial with five-years remaining at an interest rate of less 7%. According to Fijan, the buyer was one of three finalists considered for the sale. However, a previous relationship with Maier, Siebel & Baber sealed the deal. Gainey Center II will be leased and managed by CBRE's Phoenix team. At last count, KBS Realty Advisors' Valley portfolio contains more than one million sf in at least 20 office buildings.
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