Seller New Cities Land Co. of Monterey, CA bought the buildingat 8901 E. Mountain View Rd. in 2000 for more than $17 million,with a hot market dictating the current sale. According to JimFijan, executive vice president in CB Richard Ellis' Phoenixoffice, the seven-year-old building attracted 10 offers during a120-day marketing period, three of which were rock-solid bids. "Weliked the overall makeup of the buyer. The due diligence time wasshort and they liked the deal," Fijan says.

Lead tenant Wells Fargo has 45% of the space locked in to along-term lease. Fijan says there are no lease expirations upcomingfrom any other tenants anytime soon. CBRE senior vice presidentJerry Roberts, who teamed with Fijan to broker the sale, will beleasing Scottsdale Gateway II.

In terms of the asset's market presence, Phil Breidenbach,senior vice president with Colliers International Inc. in Phoenixbelieves that, while the seller made a nice profit on theScottsdale Gateway II deal, the buyer also did well, given thegrowing scarcity of class A space in the market. "There are somebuildings being developed out there, but demand is outpacingsupply," he says. "If demand continues to outpace supply and thecosts of doing business and construction go up, this thing can donothing but improve."