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SCOTTSDALE, AZ-International Capital Partners has taken the just-completed, 127,000-sf second phase of McDowell Mountain Business Park from Kitchell Development Co. and partner Horwitch Group for $29 million. The local investor acquired the 127,451-sf first phase of the class A office project for $35.08 million in late February.

“These are two institutional-grade, brand-new real estate buildings. The play for us here is that it was an off-market deal involving new buildings in shell construction,” Kevin Miller, managing director of acquisitions and dispositions for the buyer, tells GlobeSt.com. The lease rates for the buildings at 16425 N. Pima Rd. and 16435 N. 90th St. range from $30.50 per sf to $32.50 per sf gross. He says the first phase is substantially leased.

“I think we’ll get the 10,000-sf to 20,000-sf user as well as regional tenants,” Miller says. “Two of our tenants in the first phase are large, national tenants and are attracting big names.” The tenant roster includes Quicken Loans, Health Dialogue Service and University of Arizona’s Eller College of Management.

Miller anticipates both buildings, situated on 15 acres, will most likely be fully leased within 12 months because of dwindling land supply and barriers to entry in the Scottsdale Airpark submarket. “With the cost of land, we’re seeing sites going from $30 per sf to $50 per sf,” he says. “Unless you’re going to lease something there for $40 per sf, you just can’t make it work. It’s less expensive to buy than to build.” He says International Capital plans a three-to-five-year hold for the buildings.

International Capital is managing the asset. CR Richard Ellis first vice president Luke Walker and senior vice president Brad Anderson brokered the sale and are leasing the complex.

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