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SUN CITY, AZ-A Phoenix partnership has begun renovation on the 96,814-sf Bell Plaza office complex, which it bought earlier this year. The new owner is planning to invest nearly $1 million into upgrades as part of a value-add strategy to buy $50 million to $80 million of assets in the coming years.

Greg Herzner, a partner in Bell Plaza Holdings LLC, says the 70%-occupied Bell Plaza complex was acquired in January for its upside potential. He says the upgrades on the twin buildings at 17220 N. Boswell Blvd. and 10451 W. Palmeras Dr. will be completed in two phases, with the first one tackling exteriors, landscaping and new signs. “In the second phase, we’ll come back through the interior building and do the cosmetic things, like new carpeting, inside painting and new signs on the suites,” he says, adding the entire upgrade process will take six to eight months.

Both buildings, situated on nine acres, measure 48,407 sf each. Bell Plaza was built in 1974 as the original headquarters for Del Webb Corp.

Herzner tells GlobeSt.com that feedback from the marketplace showed him and his partners that the buildings were dated, but the bones were good. “It wasn’t competing well in the market,” he says. “That’s why throwing our capital investment at this was important. It isn’t that the building is horrid-looking. It just needed a fresh touch and to be brought up to more of a modern standard.”

Bell Plaza is a long-term hold for the five-month owner, who is leasing and managing the asset. “We want to keep this building and build value in it,” Herzner says.

The partnership is looking for similar office product in the Phoenix market. Herzner says the partners’ acquisition strategy, with up to $80 million to invest, is focused on undercapitalized, under-managed real estate for value-add plays.

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