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PHOENIX-Two years after acquiring a 136,846-sf office complex for $7.6 million, Denver-based Beam Reach has sold the asset for $13.5 million or $98.58 per sf. During the hold, the seller boosted occupancy at Siete Square I, III and IV from 50% to 95%.

Phil Breidenbach, vice president with Colliers International Inc.’s Phoenix office, says the class B office property at 3737, 3807 and 3877 N. 7th St. has plenty of upside. “It’s a pretty balanced roll with some happening as early as the end of this year and some occurring in 2007. This is where the upside and value-add will take place,” Breidenbach explains.

The seller originally had planned a longer hold on the six-acre complex, but ended up taking advantage of the short-term opportunity. “They figured now would be the opportune time to ensure a ‘happy ending’ for the investment,” Breidenbach tells GlobeSt.com.

Breidenbach adds that plenty of value-add opportunities remain for the buyer AG/FP Siete Square LLC, part of San Diego-based Fenway Properties. The 1980s-constructed complex has a quoted lease rate of $19.50 per sf in a submarket with $18 per sf to $20 per sf, class B rates. “I think there’s another rate increase left in the market, but the sellers didn’t want to ride the next cycle,” Breidenbach says.

Colliers senior vice president Peter Nieman, associate vice president Amy Whatley and senior associate Lindsey Carlson assisted Breidenbach with the marketing, which ran for nearly 40 days and picked up eight offers. The team, which had handled leasing for the seller for two years, is holding onto the assignment.

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