Jeff Tomei of Knightsbridge Capital in Newport Beach, CA represented both the buyer and the seller, AIG Sun America Inc. of Los Angeles. The six-year-old Portales I and the future Portales II, which will break ground in September, sit on 7.8 acres at 4800 N. Scottsdale Rd.
According to Greg Galusha, managing director of Pacific Coast Capital Partners, his company bought majority interest and recapitalized the ownership to develop Portales II. He tells GlobeSt.com that anticipated costs to build Portales II will be $43 million.
While Portales I was 96.9% leased at the time of closing, Portales II, which is scheduled for completion in late 2006, is already 40% preleased. The lead tenant will be eFunds, which signed a 75,000-sf, 10-year lease. Portales I's roster includes Piper Jaffray Cos., VistaCare Inc. and Finova Group Inc. Galusha says rates in Portales I average from $28 per sf to $30 per sf while the anticipated average rent for Portales II will be $31 per sf.
"This is an institutional-quality asset and we have a great sponsorship partner in Forum Capital," Galusha says. "They were the original developers and it's always good to partner with the guy who built the building."
In addition to the Portales project, Pacific Coast has equity commitments in other area properties including Chaparral Business Center and Ryan Kierland Corporate Center, both of which are in Scottsdale.
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