The 9977 N. 90th St. building is 90% leased while its sister at 9999 N. 90th St. is vacant. The leased building has a stable roster, with three- and four-year leases in place, according to Mark Hanrahan, managing director for the Des Moines-based Principal Real Estate Investors. "The properties are new enough that there would be limited upgrades, in the common areas, but the vacant space might require improvements, which we'll make when a tenant moves in," Hanrahan tells GlobeSt.com. He adds that the deal closed without a tenant in hand for the vacancy. One building rose in 1999 and the other came on line earlier this year in the master-planned McCormick Ranch.
Principal's been active in the Phoenix market for two decades, but has stepped up its activity in the past five years, having invested $600 million in the market to date. "We're very interested in the Phoenix market long term, given the population and employment prospects," Hanrahan says. "The market is fairly tight and the good leasing activity creates an opportunity on a value-add transaction."
Hanrahan says Principal has another office complex under contract in the area which should close soon. "Our goal is to do $3 billion of acquisitions nationwide this year," he notes.
Phoenix-based Grubb & Ellis Co./BRE Commercial LLC negotiated the transaction. Metro Commercial Properties in nearby Tempe will lease and manage 90 Mountain View for the new owner.
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