BH Properties Increases Its Phoenix Footprint

BH Properties is bullish on the Phoenix market across commercial asset classes, and it is focused on increasing its portfolio. In the last two months, the investor has acquired three properties totaling $55.3 million, bringing its Phoenix portfolio to a total of 21 properties of 1.25 million square feet of commercial space and more than 1,500 apartment units.

“Phoenix is a strategic location for us long term,” Andrew Van Tuyle, senior managing director of investments for BH Properties,” tells GlobeSt.com. “We’re committed to that market and are actively looking to expand our portfolio. We’d like to close $100 million or more in Phoenix in the next year, so to the extent we can find opportunities we will be buying.”

BH Properties most resent transactions, which GlobeSt.com has learned of exclusively, include Northsight Financial Center, a 120,000-square-foot class-A office space; a vacant 61,000-square-foot office space; and Honeywell Aerospace DSES Glendale Campus, a 252,000-square-foot office building on 45 acres. “We’re looking for traditional value add opportunities as well as covered land plays and ground leases,” says Van Tuyle. “We expect to see opportunities in the retail, office and industrial asset types.  Value in real estate today looks different than it used to, so we’re getting more creative in how we’re looking at things.”

BH Properties isn’t the only investor looking at Phoenix. The market has become a top target, particularly for value-add capital, and surging job growth and population growth is fueling investment activity. Despite rising competition, BH Properties is well positioned to aggressively buy the right properties—in other words, those that fit their strategy and acquisition profile. “I don’t know of any of our competitors that can perform in the time frames we’re able to,” says Van Tuyle. “We don’t have any investors or debt requirements, so being able to close all cash is a real advantage.  We can often close the transaction before other buyers can negotiate a contract, and I believe certainty of close is extremely important to sellers in this market.”

The recent surge of job growth has brought stability as well as diversity to the market, and that combination has positioned Phoenix for strong future growth. “Phoenix’s economy is different than it was prior to the recession. Employment is much more diverse with less focus on construction and development,” says Van Tuyle. “The low cost of living and business friendly environment make it a great place for employers, and we’ve seen several parts of greater Phoenix benefit from new companies coming into the market or the expansion of existing companies.  We definitely plan on being a net buyer in Phoenix over the next few years.”