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PHOENIX-Coming on the heels of its first metro transaction, Holualoa Baseline JV LLC has acquired a 136,323-sf research and development building from a Greeley, CO company for $11.65 million. The new owners plan an additional $3-million investment into the 10-year-old facility.

The building’s current tenant, Creative Leather Furniture, is subleasing the space from Action Performance Cos. Inc. The new owner says the building will be vacant when the sublease expires in August 2007, allowing it to begin improvements at 4707 E. Baseline Rd. “When we expand the parking and offer a generous tenant improvement allowance, we’ll be able to double the rent of the current tenant,” says Russell Groen, a principal with the local buying entity, a partnership between Holualoa Arizona Inc. and RBG Real Estate Advisors LLC.

The building currently has a 31% office build-out, with the balance warehouse space, but Groen says he’s not adverse to switching things up. “We’ll probably be offering enough of a TI allowance that someone could do a 100% office with this if they wanted,” he tells GlobeSt.com. He says there is no specific tenant targeted, but the 10-acre site would be good site for a manufacturing center, back office or corporate headquarters.

In June 2006, the Holualoa JV acquired a 76,473-sf back office building at 14841 N. Black Canyon Highway for $5.1 million. And, the partners are looking for more buildings to buy. Groen says the JV doesn’t have anything under contract at this time, but RBG Real Estate Advisors is close to placing contracts on two or three properties.

Raymond A. Fontaine and Tim Rios with Marcus & Millichap Real Estate Investment Brokerage Co.’s Phoenix office represented buyer and seller, 4707 E. Baseline Road LLC. Dan Calihan, Pat Feeney and Joe Porter from CB Richard Ellis in Phoenix will lease the developmement.

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