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FOUNTAIN HILLS, AZ-A 1031 exchange buyer looking for a value-add investment opportunity has snagged Fountainview Place for $2.1 million after it fell out of escrow twice. The 18,564-sf, class B office building is 24% occupied.

Anthony Joseph Sy of Henderson, NV got the holding from Schiller Park Building Venture LLC of nearby Mesa. “Each time the building fell out of escrow there was renewed interest because of the value-added aspect,” Andrew Fosberg, a sales associate with CB Richard Ellis Inc.’s Phoenix office, tells GlobeSt.com about 13014 N. Saguaro Blvd.

Fosberg says Fountainview Place received 12 offers during its nine months on the market. He says Sy’s $50,000 earnest money won the deal. Fosberg teamed with CBRE’s Steve Fernandez, Jenifer Lunt and Claudia Jara to negotiate the sale of the two-story building.During escrow, Fountainview Place lost a 3,000-sf restaurant tenant so Sy is looking to backfill the space, according to Fosberg. Also, one of the tenants–Prudential Real Estate–occupies 2,500 sf on a month-to-month lease. The other tenant, Parkview Dentistry, has a lease for 2,500 sf until 2011, he says.

Built in 1999, the building’s second story is still in shell shape. The new owner plans to build out the space and lease it up. “The value-add will come from the lease up,” Fosberg says, adding the average rental rate is $17 per sf, triple net. “It needs new management for aggressive leasing.” Sy plans to relocate to the Valley to oversee the leasing and management of the investment.

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