"Rents are moving very swiftly on Central and this offers a great upside potential for Hearn," says Philip Marino, principal of Intercon West Realty Advisors in Phoenix, who represented the buyer. The tower at 3101 N. Central Ave. was 91% leased at sale time.
"We liked this particular asset because it is quality real estate, well-maintained, on Central Avenue where, as a result of the tightening in the downtown market, a strengthening on Central, just a five-iron away, should follow," Stephen Hearn, president and CEO, says in a prepared statement about the motivation to acquire the property.
According to Marino, Hearn is looking for other class B plus and A high-rises with similar upside potential, but nothing is under contract right now. "Hearn has always been a long-term holder. But in recent times, they've taken advantage of the market so they move quickly on acquisitions and sales," he explains.
The National Bank Tower Plaza was built in the early 1980s. Marino tells GlobeSt.com that the new owner plans to make some improvements, but the building is in excellent shape overall. When it comes to financing and payment, Marino points out Hearn generally pays all cash for assets and then leverages them at a later date. "I think that's what's happening here," he adds. Adam Edwards, Steve Silk and Dan Broderick of Eastdil Secured's Los Angeles, CA office represented the seller.
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