Andrew White, senior vice president in the Yardley, PA-basedbuyer's Los Angeles office, says the Scottsdale Financial Center Iat 4110 N. Scottsdale Rd. offered a perfect storm from theinvestment side. "It's about 75% leased so there's some value-addby leasing up the property," he says. "It was built in 1986 sothere are some great opportunities to upgrade the building andbring it up to the standard that is commensurate with itsoutstanding location."

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White tells GlobeSt.com that BPG will invest an additional $3million to upgrade landscaping, common areas, lobbies and securityand HVAC systems. The company's underwriting requirements call fora five-year hold.

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White says BPG has been looking for all product types in avariety of markets, but Phoenix has been a somewhat difficultmarket in recent months, however. "It's been hard to find productthat meets our criteria because there continues to be a gap betweenseller and buying pricing," he acknowledges.

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But, White says there was no such gap with Scottsdale FinancialCenter I. "We negotiated a price we thought appropriate, given thelevel of physical upgrade needed and the vacancy," he adds.

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Jim Fijan and Jerry Roberts in CB Richard Ellis' Phoenix officemarketed the property for the Newport Beach, CA-based seller. BPGhas used in-house representation to broker its side of thedeal.

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Once the transaction closes, KBS will have sold three assetsfrom a five-property portfolio acquired from Scottsdale-basedDenali National Trust Inc. in 1998. In recent weeks, KBS sold the80,067-sf MesaExecutive Park at 1255 W. Baseline Rd. in Mesa and173,338-sf Camelwest Plaza at1951 and 2001 W. Camelback Rd. in Phoenix. The 100,670-sfScottsdale Airpark Corporate Center at 15020-150 N. Hayden Rd. and63,639-sf Paragon Plaza at 3131 E. Camelback Rd., both in Phoenix,are under contract.

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