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PHOENIX-After just nine months in the Phoenix market, Dallas-based Lincoln Property Co. acquires a 723,940-sf industrial portfolio from JP Morgan/Sares Regis Group of New York City. The selling price is being kept confidential, but GlobeSt.com has learned from several inside sources that the package fetched about $22 million.

Situated in West Phoenix and the Downtown, the buildings were 90% occupied at sale time. The acquisition comes within months of the groundbreaking on the 225,000-sf Lincoln Commerce Park at the southwest corner of Interstate 17 and 7th Avenue. “It’s a nice start,” David Krumwiede, Lincoln’s executive vice president, tells GlobeSt.com.

Krumwiede says the buy is part of Lincoln’s push nationwide to acquire industrial properties. More properties have been looked at in the Phoenix region, but nothing as yet is under contract, he says. The coming year, though, could bring more development and more buys.

JP Morgan/Sares Regis, which owned the portfolio for about five years, spent about four months locked in talks with Lincoln, which was representing one of its pension fund clients. “The portfolio promises to be a strong, appreciating investment for our client,” Krumwiede says. Rick Lee, principal of Lee & Associates Arizona in Phoenix, and Darla Longo of CB Richard Ellis’ Phoenix office handled both sides of the deal.

The eight buildings, built between 1985 and 1995, are positioned in business parks, with four falling within the Reywest Commerce Park. The portfolio’s 14 tenants “comprise a strong and diverse rent roll,” according to Lincoln.

The portfolio consists of 3949 W. Van Buren St., totaling 85,739 sf; 3555 W. Washington St., 116,470 sf; 3602 W. Washington St., 208,534 sf; 3655 W. Washington St., 132,429 sf; 4441 W. Polk St., 91,281 sf; 120-130 E. Watkins St., 89,487 sf.

Gary Kobus, president of Lincoln Advisory Group, says the thriving Phoenix economy makes the purchase particularly attractive. The Valley’s strategic location, he points out, is a logical choice for companies serving key markets in the Southwest.

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