PHOENIX-Two years after its acquisition, a Scottsdale company has sold the 96,951-sf Foothills Vista Tech Center for $16.35 million. Seller International Capital Partners LLC had invested about $1 million during its ownership of the two-building center and had leased it up to 93%.
According to a broker on the deal, the 2001-build center at 15210 and 15220 S. 50th St. had a very high vacancy and needed considerable tenant improvements when the seller had acquired it in 2004.
"They're promoters, they put deals together, they buy value-add and this is what they do," says Joe Porter, senior vice president with CB Richard Ellis-Phoenix, who with Dan Calihan and Pat Feeney, represented both the seller and buyer Foothills Vista LLC of Seattle in the transaction. "They stabilized the property and had leased it up, so they decided to take advantage of the cap rate change in the marketplace."
Porter tells GlobeSt.com that the deal had actually been done in the early part of 2006, but a loan assumption led to an escrow extension. "This was a floating conduit loan, with an attractive rate in relationship to the market," Porter says.
The buyer didn't have problems waiting for the closing, either, given the tenant base. The lead tenant, National Semiconductor Corp.'s regional office, is in approximately 25,000 sf, and the lease roll is staggered. Porter indicates that CB Richard Ellis will assist with leasing, and 6,500 sf remains. "We're recommending they build it out," Porter adds. "It should lease pretty quickly after that."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.