BPG InvestmentPartnership VIII LP

|

Fort Worth-based Crescent Real Estate Equities Co. last weekannounced the asset's sale, but withheld the buyer'sname. It took longer than usual to nail down theinformation due to the holiday week.

|

Andrew White, senior vice president and western regional managerfor Philadelphia-based BPG Properties Inc., says the first stepwill be to rehab the 1201 S. Alma School Rd. building. Work will becompleted within six months on lobbies, common areas, lighting andceilings. The goal is to be ready to market the 77%-leased buildingto tenants by January 2008, he adds.

|

"This was built in the 1980s and not much has been done byprevious owners to bring it to the current day," White tellsGlobeSt.com. "We think it's a class A, icon building. Almosteveryone you talk to knows this building because it's the onlyclass A, high rise in Mesa."

|

White says Financial Plaza is underwritten for a five-year hold.Grubb & Ellis Co.'s Phoenix office won the leasing contractwhile CB Richard Ellis' local staff got the managementoversight.

|

White says Financial Plaza has tremendous upside potential,particularly with its rents. "If you look at competing propertiesin the area, two- and three-story low rise, and not as highquality, they're getting rents that are more consistent with themarket," he says. "We believe once we spend the money on upgrades,we'll do better than that." And, he adds, the asset's in-placerents currently are below market.

|

Crescent had acquired the asset in January 2006 from AmeriVestProperties Inc. in Denver. Christopher Toci with Cushman &Wakefield of Phoenix Inc. brokered the original sale and the passto the BPG fund.

|

It's been several years since BPG Properties invested in thePhoenix metro. Its previous investments, though, were strictlymultifamily so Financial Plaza is its first office buy in theregion. White says the West is especially important to BPG's eighthfund, meaning more local acquisitions could be coming in the nearfuture. "We have a billion to spend there," he adds. "We'lldefinitely continue looking in Phoenix and areas around it."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.