PHOENIX-A local investment group has paid $11.4 million for the Brookstone Office Complex in midtown Phoenix.

Locally based partnership Little Horse Ranch LP bought the 117,000-sf office building at 2025 N. Third St. and 340 E. Palm Lane. The building is 99% leased.

The seller is another Arizona partnership, Gainey Ranch Financial LP. The transaction was negotiated by Insignia/ESG.

Midtown Phoenix has been one of the last office submarkets to recover. Much of the Valley overbuilding that occurred during the late 1980s was in this area, leaving large blocks of space unoccupied throughout much of the ‘90s.

The vacancy rate at the start of the third quarter in the Downtown North submarket, according to a survey by CB Richard Ellis, was 12.7% for class A space and 15.3% for class B property. That compares to the overall Valley’s 10.7% rate for class A and 10.3% for class B space.

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