PHOENIX-After a lengthy absence from the market, Rosemont Realty has returned with the acquisition of Catalina Terraces, a 176,800-square-foot office building. The Santa Fe, NM-based investor bought the class A asset from Buchanan Street Partners, paying $20.75 million for the property, which is located at 7878 N. 16th Street.
A local CB Richard Ellis team led by Jim Fijan marketed the three-story, multi-tenant property. Fijan tells GlobeSt.com that Catalina Terraces received about 10 offers, all from private investors.
“Rosemont’s offer was one of several offers that were all in the same neighborhood in terms of price,” Fijan says. “We liked Rosemont because they have owned property in the West, and they want to grow presence in Arizona. They liked the property, and it was clear they understood the opportunity because they spent a lot of time looking at it.”
Currently, Catalina Terraces is 80% leased with national engineering firm Kimley-Horn serving as the lead tenant. “The nice thing about the building is that it doesn’t have a lot of roll in the tenancy in the next couple of years,” Fijan points out.
Fijan says Catalina Terraces offers a unique investment opportunity. “It’s hard to describe because it’s not a core investment, nor is it a classic value-add investment,” he explains. “There is upside because Rosemont is buying well below replacement cost, which would be about $200 per square foot. They also have some plans to work on expenses and there is value in increased leasing.”
Buchanan Street Partners acquired Catalina Terraces in 2008 through the management of three funds operated by a subsidiary of Bank of America.
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