PHOENIX—EnTrust Realty Advisors has completedthe sale of a 164,400-square-foot office portfolio to AdlerRealty Investments, Inc., a private investment group. Theportfolio is comprised of four buildings at the Corridors Phoenixoffice park. Located at 1925, 2001, 2075, and 2095 W. Pinnacle PeakRd., the buildings were developed by The AlterGroup.

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Adler Realty Investments, Inc. is a real estate investment firmwith more than $750 million in acquisitions since its inception in1996. Adler's real estate portfolio currently consists of more than3 million square feet of office, retail, industrial andmulti-family residential properties as well as land for developmentthroughout the western United States.

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EnTrust represented the seller, The Alter Group. AlterAsset Management will continue to provide propertymanagement services to the new owner.

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James L. Clark,managing principal for EnTrust Realty Advisors tellsGlobeSt.com, the Deer Valley market is revivinglately, with a lot of lease absorption—40,000 square feet at theCorridors property alone. “It's a reliable part of the market rightnow,” he says.

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“The buyer liked the credit tenancy and the property was 80%leased, leaving some room. It was perfect timing for the buyer—theywere in the middle of a 1031 exchange.”

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Phoenix has become a prized office market with more than 1million square feet of net absorption this year, surpassing all of2013, and is attracting significant interest from investors acrossthe country. Adler Investments was able to structure thetransaction as a 1031 exchange in order to achieve their taxplanning objectives.

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“We're seeing more and more capital from the West Coast, andalso from Canada. That capital is moving inland to Phoenix. In factmore capital from around the US continues to move to Phoenix,” saysClark. “Not just downtown Phoenix, but collar submarkets asabsorption starts to move outward to places like Deer Valley.”

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The Corridors is an 80-acre corporate office park that is hometo a Drury Inn & Suites Hotel and regional headquarters forblue-chip firms such as the Chubb Group of Insurance Companies andthe Arizona State Credit Union. The project serves both nationaland regional headquarters, as well as back-office functions.

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Located on the southeast corner of I-17 and Pinnacle Peak Roadin the rapidly expanding Deer Valley area, the site is just twofreeway exits north of the Route 101 Agua Fria/Pima Freeway, theouter loop road that surrounds Phoenix.

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