"The purchase price is about 50% of replacement cost and that's a great buy," says Russell B. Groen, principal with RBG Real Estate Advisors LLC in Phoenix. Groen adds that fix-up on the building at 14841 N. Black Canyon Highway is scheduled for completion by year-end. Then, the joint venture owner Holualoa Greenway JV LLC plans to put the 6.2-acre asset on the market as "for sale" or "for lease" space.
To help finance the purchase, Groen says the partners obtained $4.3 million in a 10-year, floating-rate loan at 200 basis points above Libor with a fixed-rate conversion option. Genworth Mortgage Insurance Corp. of Raleigh, NC is the lender.
Groen, who left a full-time position at Holualoa Arizona Inc. to go out on his own earlier this year, tells GlobeSt.com that he and his partners have another deal under contract that should close within two months. He explains he's seeking value-add product in retail, office and industrial sectors, specifically in Arizona.
Jerry Roberts and Tom Adelson with CB Richard Ellis' Phoenix office negotiated the deal for Holualoa Greenway JV LLC and the seller from Los Angeles. Roberts will market the building.
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