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PHOENIX-An aggressive leasing campaign by a new owner helped score a $3.9-million, 10-year lease with an old tenant who wanted expanded offices, but was not yet ready to move into the new space.

Urology Associates had just about zeroed in on the Central Park Square Building at 2020 N. Central Ave. in the city for its new headquarters when the medical firm’s new building owner, Equus Realty Advisors, stepped up to the plate with an offer that washard to refuse, Colleen McPherson, with CB Richard Ellis Inc.’s local office, tells GlobeSt.com.

“It became a bidding war,” McPherson says of the tug-of-tenant-war between the two properties. But Equus, which paid $5 million in May for the 202 E. Earll Dr. office building that Urology Associates has called home for the last 10 years, was not to be outdone. Armed with a bag of concessions, including reduced rent and an exceptional tenant improvement package, Equus’ offer was unbeatable.

“They were very, very aggressive,” McPherson says of the La Jolla, CA-based Equus. “I was very impressed with what they did to keep this tenant in the building.”

Inking a deal to remain in the building bought the 12-physician medical group about 21,000 sf, an expansion of about 13,000 sf from its previous office, along with a sizable tenant improvement allowance, half-price rent for the first year and an option to expandinto the full 21,000 sf of office space over the next two years. The firm also has five other offices throughout the Valley.

“It offered them a chance to upgrade their space while at the same time stay at their old location,” McPherson says. “They found that attractive because they won’t have to redirect people (to new offices) and they won’t have to move.”

Equus’ aggressive leasing strategy pushed the building’s occupancy rate into the 90% range, signifying a coup for the firm, which had vowed to fill its 22% vacancy rate by the end of its first year of ownership. The transaction was negotiated for the tenant by McPherson. Equus had in-house broker John Keba structuring its side of the deal.

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