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, “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.”

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