Portfolio was 72 percent leased at time of sale.
BH Properties, LLC, a Los Angeles-based firm that specializes in acquiring and repositioning challenged or distressed commercial real estate properties, has acquired an office and industrial portfolio from Buchanan Street Partners for $22.85 million. The portfolio is comprised of three properties totaling 230,500 square feet of office and industrial space in Tempe and Chandler, Ariz.
Centrally located in two of Phoenix’ most active submarkets, the portfolio includes Tempe Commerce Park, a single-story office building located at 7420 S. Kyrene Rd. in Tempe; Ocotillo Business Center, a 102,500-square-foot, three-building industrial park located at 7910, 7970 and 8060 S. Kyrene Rd. in Tempe; and the ADP Building, a 62,100-square-foot office building located at 7474 W. Chandler Blvd. in Chandler. The portfolio was 79 percent leased at the time of sale and featured local and national tenants including ADP, MMI Precision Technology and Virtra Systems.
“The portfolio presented a prime investment opportunity to add several quality properties to our expanding Phoenix portfolio in one transaction,” said Andrew Van Tuyle, chief acquisitions officer of BH Properties. “The Phoenix market is experiencing an increasing need for industrial space by traditional and non-traditional tenants in addition to an influx of businesses moving back to the area. These assets are ideally positioned to capitalize on these trends, which are being fueled by the strengthening economy.”
The Greater Phoenix office and industrial markets continue to gain momentum with businesses relocating to the area and new job creation on the rise, driving tenant demand and rent increases. Reports indicate that vacancy rates for both sectors have decreased in the first-quarter, with industrial rates decreasing below 12 percent for the first time since the beginning of the recession.
BH Properties represented itself in the transaction. Buchanan Street Partners was represented by Bob Buckley, Tracy Cartledge, Steve Lindley and Ben Geelan of DTZ’s Phoenix office.