The buyer of record, Koll/PER LLC, has picked up three buildings, built in 1984 on five acres at 1420-1440 E. Missouri Ave., from pension fund adviser McMorgan & Co. LLC. Melinda Korth, executive vice president in Phoenix for CB Richard Ellis, says McMorgan represents a rare seller--a pension fund with long-term ownership of real estate.
"I think the seller realized it was probably time to go ahead and turn the asset as it had met the ownership goals," Korth says. The CBRE investment sales team included executive vice president Barry Gabel and senior associate investment specialist Mark Dancer.
Following a 30-day marketing period that brought multiple offers, the complex ended up with the Newport Beach, CA-based Koll for a variety of reasons. "They were an all-cash buyer. They did have a lender look at this for purposes of a line of credit, but this wasn't a typical mortgage loan situation that required discretionary approval," Korth tells GlobeSt.com. "This is exactly the type of property Koll specializes in."
Koll has snagged an asset with a balanced lease roll. Korth says 8% of the leases will roll in 2008, 17% in 2009, 32% in 2010 and 13.7% in 2011. The current rents, right now are about 12% below the going market rate. "Depending on what happens with the leasing market, Koll could, as tenants renew, move rent rates further along," she says. The tenant roster has law firms, financial and healthcare management companies, management consultants, medical and dental offices and employee agencies as tenants.
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