The two-property portfolio in the Deer Valley submarket was sold by the San Francisco-based Rreef. "It was a competitive deal. We had to work hard to get the go ahead on it," says Mykel Sprinkles, head of investor relations for Equus. The package consists of the 136,998-sf Northgate Business Center, a single building at 20401 N. 29th Ave., and 113,810-sf Blackhawk Corporate Center, two structures at 2902-3010 W. Agua Freeway.
Northgate Business Center is fully leased to national credit tenants, with Cox Communications as the lead. Its lease rolls in April 2007, according to Sprinkles. Blackhawk Corporate Center was 69% leased when it went under contract, but 21,000 sf in two leases were signed during escrow to bump occupancy to 85%, he says. Key Mortgage and D&M Marketing Inc. are the newcomers for the roster.
"These assets offer a stable investment, but there is attainable upside through lease-up and expected increases in rents," Sprinkles tells GlobeSt.com. Equus' Phoenix team will manage the portfolio.
According to Sprinkles, La Jolla, CA-based Equus acquired the properties at roughly 80% of their replacement cost. "The location, institutional quality and tenant base were very attractive," he says. Equus, getting equity backing from an affiliate real estate fund, secured permanent financing from Unum Provident Corp. of Columbus, OH. Chris Toci of Cushman & Wakefield of Arizona Inc. brokered the sale.
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