Steven Sadler, managing director of Real Estate Advisors Inc.,tells GlobeSt.com that the building at 7310 N. 16th St. oncebelonged to DBSI, an Idaho TIC investment company that ran afoul ofthe economic downturn and its own poor management. A loanmodification on the asset was closed at the same time as theacquisition, he adds, with the former TIC owners still having apiece of the asset. In this way, he goes on to say, the B unitowners will get their payout when the market rebounds.

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"In theory, and hopefully in practice, we can pull the buildingtogether and spend the money they don't have," Sadler explains,adding that the plan is to spend approximately $1.7 million incapital investment on the 1980s building during the next fiveyears. "This provided a good, significant alternative forthem."

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The building is 60% leased Lee & Associates' local officehas the leasing assignment, while Hannay Investment Properties,also of Phoenix, is managing the property. Sadler says the buildingwas a great buy because it's an attractive building with goodfundamentals. The bones are good, he comments, and it has fairlyeasy access to Sky Harbor International Airport and major highways."If you're looking in Squaw Peak submarket for office space,"Sadler adds, "you'd include this building on the list."

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While REVA Catalyst Fund is working to turn around its firstacquisition, it's looking for more to buy. Sadler says the fund islooking for class B office product, measuring from 150,000 squarefeet to 200,000 square feet, in good locations in secondarymarkets, and some kind of value-add component.

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"What we've seen are the big players, pension funds and REITsretrenching to the tier one markets," Sadler explains. "There are alot of superb real estate opportunities in secondary markets. Wesee opportunities there that we think are compelling."

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