Muller Ends Three-Year Office Hold for $14M

"The buyer was familiar with the area, had transacted business in this location and was comfortable with the market," says Barry Gabel, executive vice president with CB Richard Ellis in Phoenix. CBRE professional brokered both sides of deal for the 21-year-old buildings at 1221 and 1313 E. Osborn Rd. The seller was Laguna Beach, CA-based Muller Co. and the buyer was Miamar Investments LP.

Muller acquired Country Club Manor for $9 million in 2005. Gabel says the seller had stabilized the asset during the hold. "It was time for the seller to reap some of the rewards of ownership," he tells GlobeSt.com, adding that the new owner is a syndicator that intends to hold the asset long term.

Gabel says in-place rents are slightly under market, creating some upside as leases roll. Gabel points out that the tenant mix of law firms, certified public accountants and other professional services' companies have been in the buildings for years because of the location and will likely be around for a long time. "This asset was in great condition and in a superior location," he says. "Tenants have been there for years and years because of ease of access. This has been a property that's always done well."

Acquisition financing was arranged by CBRE/Melody executive vice president Rocco Mandala and associate Brad Miner. The CBRE sales team included executive vice president Melinda Korth and senior associate Mark Dancer, both in Phoenix, and vice chairman Kevin Shannon, senior vice president Kenneth White and director Robert Hannan, all in the Torrance, CA office.