"We'd done some research on them as a buyer and heard goodthings about them when it came to closing deals and doing thingsthey said they would, which is why we went with them," says RonLack, executive vice president for San Diego-based Equastone. Hesays the 138,540-sf Northgate Business Center at 20401 N. 29th Ave.and 113,810-sf Blackhawk Corporate Center, a two-building complexat 2902 and 3010 W. Agua Fria Fwy., were put on the market becausethey'd reached stabilization.

"When we bought the portfolio in 2005, it had an occupancy ofaround 60%," Lack says. "We were able to get the thing leased up to100% over the last two years and stabilize it. That's our goal andit was just an opportune time to sell." Equastone acquired theportfolio, spread across 24 acres, in July 2005 for $34.3million.

According to Jean Murphy, senior vice president-acquisitionswith Argus, the stable tenant base and relatively low lease roll inthe next two years were particularly attractive. She tellsGlobeSt.com that four tenants already have signed leases to expandand renew. But, she isn't discounting the asset's upside. "Most ofthe tenants have leases with below-market rents," she explains,estimating current rents are 15% below the area's market rate.