Robert J. Buckley, SVP with Grubb & Ellis/BRE Commercial LLC's Phoenix office, says DMC Investment collected the portfolio during a 15-to-20-year time span, with the most recent acquisition completed two years ago. "They still have property in California they're selling and one here," comments Buckley, who helped broker the transaction with Grubb & Ellis SVPs Tracy J. Cartledge and Steven K. Lindley. "This was their only portfolio in Phoenix. It was a family decision to move out of real estate, at least for the short term."

He tells GlobeSt.com that Biltmore Holdings beat out the other offers because of the company's local expertise and track record. He notes that price played a part, too, though Biltmore's wasn't the highest. Buchanan Street Partners, headquartered in Newport Beach, CA, kicked in $13.8 million in equity.

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

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