PHOENIX-A private investor from Los Angeles has paid $6.7 million for a stabilized, 58,180-sf office building. With the transaction, the buyer has gained a recently renovated 20-year-old building, complete with 91% occupancy and long-term tenants.
The 333 Osborne Rd. building is located in an improving market, according to Barry Gabel, executive vice president for Trammell Crow Co. "It's the midtown market, where we're starting to see positive net absorption and rising rents," he explains. Gabel and TCC executive vice president Mindy Korth represented the seller, Merit Properties Group LLC of Paradise Valley.
Gabel says Merit Properties' owner will continue to occupy part of the building, but decided to sell and buy into another submarket. "He'd owned the building since 1998. He could see the value appreciating and the rising rents so he sold this at a time in which it would be a strong transaction," Gabel tells GlobeSt.com.
Harold Belkin, represented by Jerry Smith of West USA, was selected from other potential buyers, partly because he put down 1031 exchange money on the deal and his familiarity with the market. "The buyer already owns a couple of other buildings here now," Gabel comments. "He understood the market, liked the property and was well-qualified in a 1031 situation."
Like his predecessor, the new owner plans to keep the building as a long-term hold, setting aside some space for one of his partners. "This is a building with a unique design in terms of a three-story atrium along with good tenants," Gabel says. "This will be a very nice investment for him."
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