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PHOENIX-Three years after acquiring a class B office complex, the San Diego-based ColRich Investments has sold the 136,990-sf Broadway Business Center to another San Diego investor. A first-time metro buyer, Janez Properties, and its equity partner, Pacific Coast Capital Partners LLC, have gotten the two-building complex for $16.15 million.

The office buildings at 3925 and 3945 E. Broadway Rd. were built in 1974 and renovated several times. Glenn Smigiel, first vice president with CB Richard Ellis Inc. in Phoenix, says the new buyer could likely make further upgrades.

“If they do bring it up to an A status, they could run the rents up significantly,” Smigiel says. “It’s a wonderful location in a strong growth area in the central Phoenix area.”

The business park is now 100% occupied with tenants like the City of Phoenix, headquarters for Leslie’s Poolmart Inc. and Free Life International. Smigiel tells GlobeSt.com that lease rollover isn’t a concern because the next expiration isn’t for another two or three years.

During the 90-day marketing period, the sellers picked up 10 offers. Janez got the nod because of the relationship with Pacific Coast. “We’ve known Pacific Coast for a number of years and have done several deals with them,” Smigiel says.

Smigiel says Janez made a good choice for its first Phoenix acquisition. “This was a great opportunity for them to buy below replacement cost, where they could take advantage of the upside of the Phoenix market,” he adds.

In addition to Smigiel, the seller’s CBRE team included Joe Porter, Bob Young, Steve Brabant and Rick Abraham. The buyer was self-represented.

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