"The opportunity in this deal was the ability to buy thebuildings at their current rents and know that we're going to endup with good leasing opportunities in two of the nicest buildingsin this area in a short period of time," Richard Rollnick,president of the Spokane, WA-based Crown West Realty, tellsGlobeSt.com.

The 50-50 joint venture acquired the buildings from EstesSamuelson LLC of Phoenix, which developed them between 1987 and2000. Compass Bank of Birmingham, AL, provided $17 million inacquisition funds at a Libor-based rate and the balance fundedthrough both partners' equity contributions, according to Rollnick.In addition, two loan assumptions were required before the dealcould close--expanding escrow to 11 months.

"You had multiple loans with different lenders. There were someprepayment considerations and then you had a couple of tenants thatwere in process," says Chris Toci, a director at Cushman &Wakefield of Arizona Inc.'s Phoenix office. A 45-day marketingperiod generated 17 offers on the 11-building portfolio. There werefive finalists on the short list. Toci says Crown West's marketcredibility and joint equity with St. Paul Properties of St. Paulhelped the partners rise to the top.