"There were some tenants that were going out and others thatwanted to renew, but had some tricky TI requests. Historically ithad been slow finding new tenants, but that has ramped up in last12 months," Eric Wichterman, a senior vice president with Grubb&Ellis/BRE Commercial in Phoenix, tells GlobeSt.com."Futureprospects on the building look really good."

Arizona Medical Plaza LLC of Irvine, CA, purchased the buildingfrom Phoenix-based Ensemble Investments LLC after nine months ofmarketing. The seller entered escrow once with a prospective buyerwho subsequently dropped the sale during due diligence. The buyer'swillingness to negotiate a difficult loan assumption was key to thedeal, says Wichterman. "We really needed a buyer with the stomachto operate in that area and take on the project," says the deal'ssole broker.

The buyer assumed a $1.9-million loan, with a 2010 maturity,provided by Monumental Life Insurance Co. of Baltimore at an 8.32%fixed-rate interest, Wichterman says. The balance can be prepaidbeginning in 2005. The buyer completed the balance of the purchasewith cash, closing at $100,000 below the asking price.