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PHOENIX-With plenty of 1031 exchange money to spend, Abart Properties III LLC has snagged a 62,000-sf, class A office building in an off-market transaction for $11.2 million after selling an office property in the Valley. A local developer, Fountainhead United LLC, is the seller of the two-year-old building.

“We knew Abart needed to find a property to satisfy the 1031 requirements and we knew that Fountainhead would sell at a certain number so we just brought them together,” Joshua Holmes, an adviser with Sperry Van Ness’ local office, tells GlobeSt.com. He says it took three months of negotiations to get the local buyer and seller on the same page regarding the building at 5555 E. Van Buren St.

According to Holmes, Abart was particularly attracted to the rent roll, unique architecture and Papago Mountain views. Designed by locally based Butler Design Group, the building features a contemporary design of concrete panels, steel and masonry with a battered glass-wall tower.

The building is 98% occupied by 16 tenants. The lead tenant is the Weitz Co., which leases 17,000 sf. Most leases don’t roll until the end of this decade, according to Holmes. Rents range from $20 per sf to $23.50 per sf.

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