KBS Acquires Camelback Corridor Office Complex for $85M
- May 31, 2014
By Amalia Otet, Associate Editor
In an $85.1 million deal, KBS Real Estate Investment Trust III of Newport Beach, Calif., has acquired Anchor Centre, a 333,284-square-foot office complex in Phoenix’s Camelback Corridor submarket.
The seller was an entity owned by Angelo Gordon and DW Capital. According to The Republic, the deal is the priciest office sale in the Valley in at least two years.
Located near the southwest corner of 24th Street and Camelback Road on a 7.3-acre tract, Anchor Centre consists of one six-story building and one four-story building, plus an underground parking structure that links the two.
A $10 million renovation in 2011 and 2012 added a modernized entry, visitor parking with direct access to Camelback Road, a outdoor common area with a central water feature, shaded outdoor seating and wireless internet access. Additionally, the complex features a fitness center, on-site conference room and the Gladley, a white- tablecloth restaurant.
Anchor Centre was 79 percent leased at the time of closing. The building’s largest tenant is health-insurance provider Humana, which occupies 71,221 square feet.
The buyer was attracted by Anchor Centre’s location along the top-performing Camelback Corridor submarket. KBS plans additional upgrades to add value and keep the property competitive.
“Because of its amenity package, walkable amenities, nearby hotels and its 24th Street and Camelback location in the Camelback Corridor, we believe Anchor Centre is an exceptional asset that combines everything KBS REIT III pursues in a new acquisition,” said KBS Capital Advisors West Region President Rodney Richerson in a statement. KBS Capital Advisors is KBS REIT III’s external adviser and is an affiliate of KBS Realty Advisors, an SEC-registered investment adviser.
One other Phoenix-area asset is owned by a KBS affiliate: the 445,957-square-foot Fountainhead Office Plaza, a two-building, Class A office complex in Tempe. Located in the 140-acre Fountainhead Corporate Park, that complex is owned by KBS REIT II.
Image courtesy of KBS Capital Advisors via Business Wire