PHOENIX—Shari Stults, vice president/mortgagebanker at NorthMarq Capital's Phoenix basedregional office, secured $10.5 million in acquisition financing forPalm Valley Office Park I & II, located at 1616 & 1646 N.Litchfield Rd. in Goodyear. These two class A office buildingscontain a combined 83,971 square feet. The transaction wasstructured with a 5-year term and 30-year amortization schedule.NorthMarq arranged financing for the borrower through itscorrespondent relationship with a life insurance company. Thebuildings were acquired by K2H Palm ValleyLLC, a company formed by Kootenay HoldingsLtd. in Vancouver, B.C., Canada.

Stults tells GlobeSt.com, “We've been very busyon all front with Freddie Mac, Fannie May, multifamily and alsoloan companies. This general submarket has a high vacancy rate—giveor take 25%. But the micro market, if you zero in on the class ofthe property, it's more like 5%. It's a high visibility locationand that's part of what made it so attractive. There are a lot ofmedical office tenants with Cancer Treatment Center of America tothe south and West Valley Hospital to the east. It also boasts abalanced tenant rollover schedule and was 90% leased. Thisexceptional asset features an ideal, diverse tenant mix. The strongcharacteristics of the deal are an indication of the improvingoffice market conditions in the Phoenix metro and Goodyear inparticular.”