Equus Trades Office Complex in Scottsdale
- Feb 13, 2015
Equus Capital Partners has made a return on investment from one of its Scottsdale properties, and is now passing the buck to a new owner.
The private-equity real estate manager has sold Lincoln Towne Centre, a 226,112-square-foot, two-building property at N. Drinkwater Blvd. in downtown Scottsdale to Transwestern Strategic Partners for $58.8 million.
Equus’ value-add fund, BPG Investment Partnership IX, of Philadelphia bought the property in 2012 for $34.25 million, or $153.17 per square foot, from Lincoln National Life Insurance Co., according to the Phoenix Business Journal.
“Lincoln Towne Centre was a classic value-add office investment for our firm,” said Jonathan Praw, VP & head of West Coast Operations for Equus Capital Partners said in a news release. “When we acquired the complex, it was just 67 percent leased, while the submarket vacancy rate was in themid-20-percent range. We were able to quickly improve occupancy to 99 percent at the time of the sale and benefitted fromthe 30-percent increase in downtown Scottsdale rental rates.”
Located at the intersections of Drinkwater Boulevard and Indian School Road, Lincoln Towne Center was built in 1999 and consists of two five-story office towers with four-level below-grade parking. The asset is close to Scottsdale Fashion Square, the Scottsdale Waterfront development and the W Hotel.
Half of the asset is occupied by investment-grade tenants including CNA, Catlin and EMC2.
Lincoln Towne Center is one of two properties that Equus owned in Scottsdale. In 2008, its affiliate BPG Investment Partnership VIII LP acquired Scottsdale Financial Plaza I, located about a half mile from Lincoln Towne Centre.