Laguna Hills, CA-based Muller plans to sink $400,000 into the 156,250-sf, class B campus at 6200-6390 E. Thomas Rd., according to Eric Wichterman, vice president of Grubb & Ellis|BRE Commercial LLC who teamed Stan Shafer and Jeff Wentworth to broker the transaction. "This is a true value-added play," Wichterman tells GlobeSt.com. "It traded at the low price per sf of $80 and at a 9% cap."

Muller faced off against another would-be buyer who wanted to demolish the office buildings and develop residential product on the 14-acre site. "The land is worth more than the buildings," Wichterman says, adding the seller turned down an offer that was seven digits higher than Muller's because it required canceling existing leases and rezoning. Muller shored up its positioning by going hard with a significant amount of earnest money, according to Wichterman.

The upside in Scottsdale Executive Villas, built in the 1980s, will come from leasing the vacant space and increasing rents when the renovation's done, says the deal's broker. The average rent is $16.70 per sf, but Wichterman estimates they could be bumped 10% to 15%.