"This is a unique building from the standpoint that its newer generation and it has all the new systems," explains Christopher R. King, DPC Development's president. He tells GlobeSt.com that Mesquite Corporate Center is 67% occupied, with a nicely spaced roll. But the other aspect that really appealed was its location at 14646 N. Kierland Blvd., on the edge of the Kierland Championship Golf Course in the 750-acre Kierland master-planned community.

"When I called (Chris) to see if he was interested in the building, he'd told me that less than 10 days ago, he'd been on the golf course and was standing in the tee box," says Barry Gabel, executive vice president with CB Richard Ellis' Phoenix office, who represented the seller. "He looked over, saw the buildings and said he'd be happy owning any of the office building on the course. He happened to be standing by Mesquite Corporate when this happened."

Gabel tells GlobeSt.com that seller, an entity overseen by Prudential Real Estate Investors had the asset for 10 years, since it was built through a joint venture with Trammell Crow Co. "They always enjoyed enormous success with this; the property had always been full," says Gabel. "But I don't think they wanted to hold it for another five to seven years."

Gabel says he and partner and CBRE executive vice president Melinda Korth marketed the 10-year-old asset to a limited number of buyers. The asset attracted a lot of interest; even during the escrow process, Gabel says he fielded a variety of calls. "This is intrinisic in terms of locale, upside, look and design, and it's been well-maintained since the day it was built."

Now that DPC has launched its first buy since leaving the market in 2002, King says he's ready for more. DPC left the market in early 2002 when the market began overheating, though King acknowledges the company may have gotten out a little too soon. Still, in the following years, "we couldn't get comfortable with where the value of the buildings in Phoenix were going," King comments. "In hindsight, since the downturn, it looks as though our decisions were justified."

Though the Mesquite Corporate Center buy might be a little early for a market re-entry. King points out the potential for a further downward side is pretty small. But the upward gain could be significant, he remarks. For one thing, the 67% occupancy provides some good upside room. Furthermore, DPC Properties plans on freshening up the common areas, though King says the building has been well-maintained.

DPC Development is looking for assets valued at between $4 million and $15 million, with some kind of value-ad potential. King says the company has its eye on several opportunities, but nothing is under contract right now.