Bidding Rally Draws $96M for 336,939-SF Office

The class A buildings, situated on 7.3 acres at 2201 and 2231 E. Camelback Rd., are 89% leased. With a 20% lease roll during the next three years, current in-place rents provide some good upside, says Christopher E. Toci, executive director with Cushman & Wakefield of Arizona Inc., who represented the Lakewood, CO-based seller. "The in-place rents are less than $24 per sf and the market rents are $35 to $36 per sf," he says. "The rollover isn't major, but enough so they can at least get to some of that upside."

Anchor Centre's lead tenants include Starwood Hotels and Resorts Worldwide Inc., Northwestern Mutual Life Insurance Co., JPMorgan Chase & Co. and Clear Channel Communications Inc. Transwestern's Phoenix office has the leasing assignment.

Toci tells GlobeSt.com that the 1980s-era asset attracted 14 offers in the first round, with the final go-round pared to three bidders. He says Alliance Commercial was comfortable with Transwestern as the buyer because the all-cash deal was financed through its Aslan Realty Partners III equity fund. "As a fund-level player, the buyer obviously gave Alliance comfort that they had money in the bank," Toci says. The C&W sales team included senior director Jerry Jacobs, executive director Larry Downey and associate Ted Harrison.

Alliance Lakewood acquired Anchor Centre from New York City-headquartered Patrinely Group LLC in August 2005 for $71.5 million. Two years earlier, Patrinely paid $50 million for it to San Francisco-based Rreef. Toci explains Alliance and Patrinely had invested more than $2 million into improvements. And, he says Transwestern is planning to put $2 million more into upgrades, including building out some spec office suites. "There's been meat on the bone for each of the subsequent investors to realize some of the upside," Toci says.