BPG Acquires Scottsdale Office Complex for $34M
- Mar 01, 2012
March 1, 2012
By Nicholas Ziegler, News Editor
Private-equity real estate fund manager BPG Properties Inc. has acquired Lincoln Towne Center in Scottsdale, Ariz., for $34.3 million from Lincoln Life Insurance Co. The 223,605-square-foot, Class A office complex was picked up by BPG’s newest fund, BPG Investment Partnership IX L.P., marking the first buy for the fund. The property is currently 67 percent to tenants including CNA National Warranty Corp. and EMC Corp.
Jonathan Praw, vice president & head of BPG’s West Coast office, oversaw the transaction on behalf of BPG. He called the sale an “opportunity to acquire a quality retail complex in the highly desirable Scottsdale submarket of Phoenix as a price substantially below replacement cost.” The seller was represented by CBRE Group Inc. in the transaction.
According to a fourth-quarter 2011 report by Colliers International, the greater Phoenix area saw the office sector gain ground for the third consecutive quarter, marking positive net absorption and a decline in the vacancy rate to 22.1 percent. “The recent stabilization in the office market brightens the outlook for 2012,” the report noted, “when economic expansion and employment growth are likely to accelerate.”
Part of the BPG’s purchase price came courtesy a $22 million acquisition loan arranged by Churchill Commercial Capital. The complex, constructed in 1999, consists of two five-story towers with below-grade parking.
Lincoln Towne Centre is the second acquisition BPG has made in the Scottsdale submarket. In 2008, the firm acquired L.P. Scottsdale Financial Plaza I on behalf of BPG Investment Partnership VIII. That propertiy is a 107,135-square-foot office building located less than 0.5 mile from Lincoln Towne Centre.