Steven Sadler, managing director of Real Estate Advisors Inc., tells GlobeSt.com that the building at 7310 N. 16th St. once belonged to DBSI, an Idaho TIC investment company that ran afoul of the economic downturn and its own poor management. A loan modification on the asset was closed at the same time as the acquisition, he adds, with the former TIC owners still having a piece of the asset. In this way, he goes on to say, the B unit owners will get their payout when the market rebounds.

"In theory, and hopefully in practice, we can pull the building together and spend the money they don't have," Sadler explains, adding that the plan is to spend approximately $1.7 million in capital investment on the 1980s building during the next five years. "This provided a good, significant alternative for them."

The building is 60% leased Lee & Associates' local office has the leasing assignment, while Hannay Investment Properties, also of Phoenix, is managing the property. Sadler says the building was a great buy because it's an attractive building with good fundamentals. The bones are good, he comments, and it has fairly easy access to Sky Harbor International Airport and major highways. "If you're looking in Squaw Peak submarket for office space," Sadler adds, "you'd include this building on the list."