poised to pass

Brookfield Asset Management Co.'s Real Estate Opportunity Fund's acquisitions team had determined the class A office buildings at 201 N. Central Ave. in Phoenix and 1111 Fannin St. in Houston weren't an integral part of the strategic mission. "From an opportunity fund perspective, there was no work to be done on these two assets," a spokeswoman for the Toronto-based Brookfield, tells GlobeSt.com. "And, it was thought they would be a better fit in someone else's portfolio."

Brokers, who asked to remain anonymous, say both buildings share many characteristics, including their construction in the early 1970s and long-term leases with JPMorgan Chase as the lead tenant. The local sources confirm that both assets traded at cap rates south of 5.5%.

A Phoenix broker speculates the sale was a continuation of Brookfield's acquisition strategy. "If Brookfield bought these assets as part of a portfolio, it provided a quiet, off-market opportunity for Chase to pull some cash out of the deal," he explains. "Then, Brookfield could go through a more traditional investor market and get more money out of it."