Located at Loop 101 and Ray Road, the fully leased, two-building complex was marketed without a minimum ask by Rreef Funds of San Francisco. But, area sources say class A properties are bringing, on average, $200 per sf in the Chandler and South Tempe submarkets.

"We've seen a number of things coming out both in the Camelback Corridor and on the northwest side," says Ray Owens, managing director of capital markets for the Norcross, GA-based parent of Wells REIT II. "But from an overall value standpoint, we felt comfortable where we made this investment, vis a vis the costs of obtaining quality properties in Phoenix today."

One driving force in Wells' decision to acquire the buildings, developed in 2000 and 2003, is the surrounding infrastructure. Loop 101's extension will help open up the eastern and southeastern sectors. "We've seen good population and housing growth there," Owens says. "We like the demographic characteristics in the Chandler-Tempe area."