The 72%-leased, five-building complex at 7373 N. Scottsdale Rd. was acquired from Prince Properties LLC of New York City. Chris Toci and Ted Harrison with Cushman & Wakefield of Arizona Inc.'s Phoenix office represented the seller while Marc Jones, first vice president of Arden Realty negotiated the buy side.
Jones says the asset fits perfectly with the Los Angeles buyer's investment parameters. "We're 100% office, suburban office," Jones says. "We're not interested in CBD locations. We're looking more at submarkets in strong suburban areas."
Jones tells GlobeSt.com that the 20-year-old Scottsdale Centre also fit Arden Realty's strategic plans because of its upside potential. He says the value-add lies in lease-up with its current occupancy. "As rates are moving higher, we can ride that wave and get it leased up at higher rates than what's already there," he says, adding the complex requires little in the way of capital infusion.
Arden Realty's average hold is three to five years. Jones anticipates Scottsdale Centre will be in the portfolio at least that length of time, depending on market conditions. Grubb & Ellis/BRE Commercial LLC and Arden's team will co-lease the complex. The new owner will manage it.
Meanwhile, Arden Realty is looking for more Phoenix area properties. "We're looking at some things right now, but nothing far enough along to be under contract," Jones says. "We've been in the market for less than a year and we're doing well. As we continue to tell our story and build relationships, brokers will have a better understanding of who we are and what works for us."
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