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PHOENIX-After just two months on the market and eight offers, Siete Square I, III and IV have traded to the Denver-based Beam Reach Real Estate Fund for $7.6 million. The three class B buildings, totaling 145,477 sf, were sold by Century National Properties, a division of Century National Insurance of Seal Beach, CA.

“This is (Beam’s) first foray into Phoenix,” says Colliers International agent Phil Breidenbach who listed the buildings at 3737, 3807 and 3877 N. 7th St. along with senior vice president Peter Nieman and Amy Whatley. “They like the fact that Phoenix is a growth market and thought it was a great opportunity to pick up a great piece of real estate at below replacement cost.”

Breidenbach tells GlobeSt.com that the three buildings are the only properties that Century National Properties owns in Phoenix. A recent restructuring within the company resulted in the assets being put on the market. “They no longer considered the buildings as core assets,” he says.

The buildings range from 16 to 18 years old. Despite their age, they are in good shape, Breidenbach notes. “Century National had really spent the last three years preparing the buildings for leasing,” he explains. “They had invested significantly in the properties.”The company had picked up two of the buildings out of foreclosure about seven years ago and purchased the other one outright about five years ago. Currently, the buildings, situated on six acres, are 68% leased and have a rental rate in the mid-teens, according to Breidenbach.

Breidenbach says Beam thinks it can create upside in many ways, particularly since the holdings were bought below replacement costs. The Denver-based private equity fund will work to fill up the buildings. It also believes it can claim some upside by selling them one by one. Beam obtained financing from Fremont Investment & Loan of Anaheim, CA, to acquire the properties, which will continue to be leased and managed by Colliers International’s Phoenix team.

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