GLENDALE, AZ-Brookwood Olive Square Investors LP, an affiliate of Brookwood Financial Partners LP of Beverly, MA, has sold its last asset in the area, the 209,174-sf Brookwood Commerce Center for $20.46 million. The transaction represents the second real estate purchase in the area for the buyer, RealNet Investments LLC, a TIC sponsor in Portland, OR.
Situated on 16.5 acres at the intersection of 43rd and Olive avenues, the 1973-constructed office building was 47% occupied when it was acquired by Brookwood Olive Square Investors for $5 million in 1998. Following upgrades to the HVAC system and common areas, as well as an aggressive leasing program, the building was 91.3% leased when it sold to the TIC group. The tenant base includes state municipal service groups, state institutions and medical-related companies.
"When we do our due diligence, we do tenant interviews. I can't remember a building we've purchased where the tenants are as happy as they are here," Scott Fouser, managing principal with RealNet Investments, tells GlobeSt.com. "I don't know if it's a combination of reasonable rents or building functionality, but everyone seems to like it here."
Fouser says some leases are scheduled to roll in 2007, but some tenants already are taking space and extending their pacts until 2010. Managing and leasing activities will continue to be handled by Kitchell Corp. in Phoenix.
Meanwhile, a source with Brookwood Financial Partners says the sale will allow it to focus on further acquisitions over the next six to 12 months, with Phoenix metro being one of the targeted areas. The commerce center was bought in the late 1990s along with a multifamily asset and Black Canyon Commerce Park, which were sold in 2003 and 2005 respectively.
As for Fouser, more acquisitions in the area aren't out of the question. "If we can find the investments in the area that meet our needs and price range, we're interested," he adds. Steve Rowland and Stan Shafer of Grubb & Ellis/BRE Commercial LLC's Phoenix office negotiated the transaction.
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