515,722-sf flex/industrialportfolio sold

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Robert J. Buckley, SVP with Grubb & Ellis/BRE CommercialLLC's Phoenix office, says DMC Investment collected the portfolioduring a 15-to-20-year time span, with the most recent acquisitioncompleted two years ago. "They still have property in Californiathey're selling and one here," comments Buckley, who helped brokerthe transaction with Grubb & Ellis SVPs Tracy J. Cartledge andSteven K. Lindley. "This was their only portfolio in Phoenix. Itwas a family decision to move out of real estate, at least for theshort term."

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He tells GlobeSt.com that Biltmore Holdings beat out the otheroffers because of the company's local expertise and track record.He notes that price played a part, too, though Biltmore's wasn'tthe highest. Buchanan Street Partners, headquartered in NewportBeach, CA, kicked in $13.8 million in equity.

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Buckley says that the portfolio, which is on average 15 yearsold, is 87% occupied and won't require many physical improvements.Biltmore Holdings is planning to reposition the assets and increaselease rates. "The prior ownership took good care of the properties,but they were way undervalued from a leasing standpoint," Buckleysays. "In some cases, lease rates were less than 50% of market."Grubb & Ellis SVP Andy Markham and Mike Haenel have theportfolio's leasing assignment.

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Buckley adds that there is a great deal of rollover during thenext three years. Once Biltmore Holdings has stabilized theportfolio, it could sell within the next five years. "A lot willdepend on what strategically makes the most sense as we moveforward," Buckley adds. "But this wasn't acquired for a specificlong-term hold."

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