Younan Sells Four Gateway for $27M Plus

Younan Properties had acquired the building at 444 N. 44th St. in December 2004 for $20.4 million, getting a stake in the four-building Phoenix Gateway Center near Sky Harbor International Airport. "They did a good job in making it more efficient in terms of operations," explains Bob Young, first vice president with CB Richard Ellis in Phoenix. He says cap rate compressions and a strong market meant the seller was able to make a good profit over a relative short period of time.

Young says there isn't any lease rollover until 2008. The top names on the roster are ValueOptions and Eclipsys Corp.

From Younan's perspective, though, the building really didn't fit portfolio, which consists of larger, high-rise assets. "Four Gateway was one of our smaller assets," comments Zaya Younan, the investment group's chairman and CEO. "And, we're not pulling out of the Phoenix market. We believe the Phoenix market will continue to appreciate in the next couple of years and there continues to be more demand there than supply."

Younan tells GlobeSt.com that proceeds from the Four Gateway sale will be used for pending acquisitions in Chicago and Dallas. In Dallas, he's under contract to buy KPMG Centre in the Downtown and another class A property in the LBJ Freeway corridor.

Brookwood Financial Partners of Beverly, MA received the nod for the purchase following a four-week marketing period, setting up a market re-entry. Its top price and solid reputation for closing deals were the dealmakers, Young explains. "They liked the area, and they were ready to get back into the market," he says. "About a year ago, they'd sold their last product in town, but wanted to get back here." The CBRE sales team also included first vice presidents Glenn Smigiel and Steven Brabant and senior associate Rick Abraham.