PHOENIX—KBS Real Estate Investment Trust III, a public non-traded real estate investment trust based in Newport Beach, has purchased Anchor Centre for $85.1 million plus closing costs. The 333,284-square-foot office complex consists of two buildings in Phoenix’s Camelback Corridor submarket. An entity owned by Angelo Gordon and DW Capital was the seller.
“We like the fundamentals of Phoenix right now and would like to acquire additional assets in the market,” KBS Capital Advisors west region president Rodney Richerson tells GlobeSt.com. “Phoenix was hard hit with the economic down turn, maybe more so than other markets, but the market is starting to see good job growth and absorbing much of the vacancy.”
Anchor Centre consists of one six-story and one four-story building on approximately 7.3 acres at the southwest intersection of 24th Street and Camelback Road. The property underwent an extensive, $10 million renovation between 2011 and 2012 and currently has an amenity package that includes a fitness center, on-site conference/boardroom and a highly rated restaurant, the Gladley. Visitor parking and access to Camelback Road were incorporated during the renovations, as well as significant exterior enhancements and the addition of courtyard seating with Wi-Fi connectivity.
Anchor Centre’s location provides easy access to executive housing, with numerous shops, restaurants, hotels and golf courses within walking distance. Anchor Centre was 79-percent occupied at the time of purchase. The building’s largest tenant is Humana, which occupies 71,221 square-feet.
“Because of its amenity package, walkable amenities, nearby hotels and its 24th Street and Camelback location in the Camelback Corridor, we believe Anchor Centre is an exceptional asset that combines everything KBS REIT III pursues in a new acquisition,” says Richerson.
There is one other Phoenix-area asset owned by a KBS-affiliated entity: the 445,957-square-foot Fountainhead Office Plaza in Tempe owned by KBS REIT II.