A joint venture between Lincoln Property Company and Oaktree Capital Management has purchased the Biltmore Commerce Center in Phoenix, Arizona for $58 million. Denver-based DPC Development Company sold the 258,348-square-foot Class A office building after purchasing it in 2013 for $42.77 million and deploying a major face-lift of the property.
"Phoenix has the lifestyle, the labor and the commercial real estate to generate upside value, drive demand and respond to tenant needs at almost any point of the real estate cycle," said Lincoln Property Company's Executive Vice President David Krumwiede, who directed the Biltmore Commerce Center investment purchase. "It's an exciting dynamic to work in, particularly when you have a team that can see potential at any given point in the cycle, and use their investment, development and management skills to build on that potential. It leads to a lot of opportunity in many venues, including this latest, great portfolio addition."
"One of the many strengths of Biltmore Commerce Center is the subterranean parking, which provides quick and direct access to all tenant floors via two separate elevator banks," added Mark Jacobs, Managing Director with Oaktree Capital Management. "Tenants can go from their car to their office in less than 60 seconds, compared to five or 10 minutes for most buildings within the submarket. In addition, the location offers great visibility while providing quick and easy access without the high traffic congestion that other projects often experience."
The Biltmore Commerce Center was constructed during the mid 1980s real estate boom at the northeast corner of 32nd Street and Camelback Road. It sits on a 7.5-acre site and includes a six-level parking garage. The property is currently 93% leased to a diversified group of established tenants including HDR Engineering, Lee & Associates, United Way, Greystar, North American Title Company and Miller Russell & Associates.
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