The class A buildings, situated on 7.3 acres at 2201 and 2231 E.Camelback Rd., are 89% leased. With a 20% lease roll during thenext three years, current in-place rents provide some good upside,says Christopher E. Toci, executive director with Cushman &Wakefield of Arizona Inc., who represented the Lakewood, CO-basedseller. "The in-place rents are less than $24 per sf and the marketrents are $35 to $36 per sf," he says. "The rollover isn't major,but enough so they can at least get to some of that upside."


Anchor Centre's lead tenants include Starwood Hotels and ResortsWorldwide Inc., Northwestern Mutual Life Insurance Co., JPMorganChase & Co. and Clear Channel Communications Inc.Transwestern's Phoenix office has the leasing assignment.


Toci tells that the 1980s-era asset attracted 14offers in the first round, with the final go-round pared to threebidders. He says Alliance Commercial was comfortable withTranswestern as the buyer because the all-cash deal was financedthrough its Aslan Realty Partners III equity fund. "As a fund-levelplayer, the buyer obviously gave Alliance comfort that they hadmoney in the bank," Toci says. The C&W sales team includedsenior director Jerry Jacobs, executive director Larry Downey andassociate Ted Harrison.


Alliance Lakewood acquired Anchor Centre from New YorkCity-headquartered Patrinely Group LLC in August 2005 for $71.5million. Two years earlier, Patrinely paid $50 million for it toSan Francisco-based Rreef. Toci explains Alliance and Patrinely hadinvested more than $2 million into improvements. And, he saysTranswestern is planning to put $2 million more into upgrades,including building out some spec office suites. "There's been meaton the bone for each of the subsequent investors to realize some ofthe upside," Toci says.

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