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10/20/17
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In a recent office campus buy in Arizona, a venture between Equus Capital Partners and iStar Inc purchased McDowell Mountain Business Park, a 255.6k sf property in Scottsdale, for $53.15 mil ($208/sf). McDowell Mountain Business Park is a Class A office complex comprised of two identical three-story office buildings located at 16425 and 16552 N. Pima Rd.
The asset was acquired as an REO property from RAIT Financial Trust. The acquisition was funded with $42.6 mil in first mortgage debt provided by Mesa West Capital.
Constructed in 2006 and 2007, McDowell Mountain Business Park was 74% leased at acquisition to a diverse group of tenants. This upscale property is situated in a prime central location on the Loop 101 just north of Frank Lloyd Wright Blvd, providing easy access, excellent visibility and exposure.
Each L-shaped building offers expansive common areas with upscale finishes and floor plates that allow for maximum flexibility in layout and design. In addition to its mountain views, the amenity-rich office complex is just minutes from a variety of nearby resorts, hotels and golf courses. A wide range of restaurants and retail stores are also nearby, and the buildings are only three miles from the Scottsdale Municipal Airport.
This is the second joint venture for Equus and iStar in the Scottsdale market. The venture also owns Raintree Corporate Center, which is currently 95% leased, up from 51% at the time of acquisition in September 2015. Raintree Corporate Center is a mile south of McDowell Mountain Business Park.
iStar has invested in Class A office, retail, industrial and residential projects in the greater Phoenix market for more than two decades. This joint venture was made on behalf of Equus Investment Partnership X, L.P., a discretionary fund managed by Equus. Affiliates of Equus also own Scottsdale Gateway I, a 106.9k sf office building, and 92 Mountain View, a 116.2k sf office building, in the Scottsdale area.
Bryan Taute, Jim Fijan and Will Mast with CBRE’s Phoenix office headed the negotiations on the transaction between Buyer and Seller. Bryan Taute has also been appointed to spearhead leasing and marketing activities for the property. Mesa West Capital’s five-year floating rate interest only loan was arranged by Rocco Mandala with CBRE in the firm’s Phoenix office.
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