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TEMPE, AZ-One of this city’s largest redevelopment projects, the Brickyard on Mill, has been sold to a group of local investors for $29.5 million, one year after developer, MCW Holdings, defaulted on a $33-million loan.

BYPG Holdings LLC of Phoenix bought the six-story, 203,072-sf, brick-front structure, located along Mill Avenue between Sixth and Seventh streets, from Bank One. Earlier this month, the bank took back the holding from Brickyard Properties LLC of Phoenix. The limited liability company held the title to the building, which has been in bankruptcy since October.

“The buyer liked the quality of the building and felt it was a good asset for a long term investment,” Bob Burnand, director of the Capital Advisors Group with Insignia/ESG tells GlobeSt.com. The purchase didn’t include 88 luxury residential lofts, which Burnand said are almost sold out.

The building’s new owner has some monumental challenges to overcome. Despite its prime location in downtown Tempe and a roster of top-notch tenants such as Borders, Bank of America and the Bamboo Club, the office-and-retail building remains 75% vacant. The structure also has sustained mold damage.

Arizona State University had expressed interest in buying the building after Alan Mishkin, a partner in MCW, filed federal bankruptcy court papers Oct. 17. In the court papers, Mishkin said MCW also was in default on $19 million in loans on other downtown Tempe developments.

Burnand, along with Karston Peterson, Dave Seeger, Mark Gustin, Stephanie Davis and Paul Holland, all with Insignia ESG, represented both buyer and seller in the $29.5-million transaction.

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