CHANDLER, AZ-A San Francisco-based investment group has entered the metro market with the $16.6-million acquisition of the 135,535-sf Stellar Business Center from Principal Financial Group. The buyer, GID Investment Advisors LLC, is renaming the five-building complex to Windsor at Stellar Business Center.
Other than a name change, the new owner won't do much more to the two-year-old industrial complex at 4330-60 W. Chandler Blvd. other than to boost the 62% occupancy. "This is a good, strong product," says Richard Ross, GID Investment's director of western region acquisitions. The tenant mix is semiconductor and high-tech businesses combined with a smattering of service and showroom tenants.
Ross says the City of Chandler provides an ideal locale for this particular investment. "It has a strong economic base in terms of Intel and Motorola. It has strong demographics and a strong government administration that requires new construction to have a higher quality," he says. Barriers to entry when it comes to development also are a factor in Chandler because there are somewhat more stringent requirements in building, he adds.
"We liked the product and were able to buy it at an attractive valuation," Ross tells GlobeSt.com. "It's a good MSA, a good submarket and a good piece of real estate in a strong location."
GID Investments is looking for more investments in the area, but Ross says there are no more contracts in hand. Its target investments are assets built in 1980 or later in institutional locations with strong tenant rosters.
Trammell Crow Co.'s Phoenix office handled the transaction on behalf of the Des Moines-headquartered Principal Financial. TCC also will lease and manage the complex for the new owner.
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