Four years ago, Younan Properties acquired Meridian Bank Tower at 3550 N. Central Ave. for $11 million and Central Plaza at 4041 N. Central Ave. for $21 million. These days, class A office space in the CBD has been trading for $280 per sf to $325 per sf. CB Richard Ellis' Phoenix team has the marketing assignments for both buildings.

Zaya S. Younan, chairman and CEO of the Woodland Hills, CA-based investment group, says the reason for the double sale has nothing to do with the Phoenix market, but everything to do with his company's footprint in the market. "Combined these two buildings are about 700,000 sf. We like to be in a market with a larger holding, but we couldn't find anything additional in Phoenix to buy at this time," he explains.

[IMGCAP(2)]Additionally, the corporate chief says Younan Properties has succeeded in its goal to turn around both assets, having invested a combined $6 million for upgrades and stabilization. The 26-year-old Central Plaza stood at 60% occupancy when Younan Properties acquired it in April 2004 while Meridian Bank Tower, also of 1980s vintage, was 55% leased when the company closed on it the following October. The buildings are now 93% and 90% occupied, respectively.

Younan emphatically tells GlobeSt.com that while he's out of the market right now, he's not gone for good. He says the basic fundamentals are still very strong--and he'll be back. "Not long ago, Phoenix was the best-performing market in the country," he explains, adding the market is going through a "catch your breath" moment. "But once that breath is caught, look out. With the lack of new inventory coming on line and continued strong absorption, the market will do well."