PHOENIX-Orsett Properties Ltd. has expanded its local portfolio with the purchase of Madison Square, a 177,375-square-foot, two-building office property. The local owner paid $15 million for the class A- asset, which is located in the Camelback Corridor submarket at corner of 16th Street and Missouri Avenue.
Orsett acquired Madison Square from Trust Realty Advisors Inc., a court appointed receiver. The property had gone through a foreclosure. The previous owner was Muller Company, which acquired the complex in 2000 for $22 million, according to Eric Wichterman with Cassidy Turley BRE Commercial’s Investment Services Group.
Wichterman negotiated the sales transaction along with Mark Coover, Jeff Wentworth, Blake Hastings and Sean Spellman with Cassidy Turley BRE Commercial’s Office Services Group.
Madison Square garnered 17 offers, Wichterman notes. “It’s hard to find a distressed property in the Camelback Corridor submarket because most of the owners on the street are institutional and well-funded,” he adds. “It’s a tremendous location that is attractive to tenants.”
Orsett won the deal because its offer was “at the top of the stack,” as well as its financial strength, Wichterman says. He tells GlobeSt.com the company worked out a loan assumption with the special servicer that reduced the loan amount from $16.7 million to $12 million.
Built in 1986 and 1990, Madison Square was 60% occupied at the time of sale. Orsett, which owns 15 office and industrial buildings throughout the Phoenix metro area, has retained Cassidy Turley BRE Commercial to handle the leasing of Madison Square. Wentworth, Hastings and Spellman will serve as leasing agents.
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