Westport Acquires Second Phoenix-Area Property with Scottsdale Financial Center II Pickup
- Jan 17, 2012
January 17, 2012
By Scott Baltic, Contributing Editor
Westport Capital Partners L.L.C., of El Segundo, Calif., has purchased Scottsdale Financial Center II, a 150,000-square-foot office building in Scottsdale, Ariz. Terms of the acquisition were not disclosed. The purchase follows by about two months Westport’s acquisition of Pinnacle Peak Business Park, a 124,000-square-foot flex-industrial park in Deer Valley, Ariz., also in metro Phoenix.
Greg Geiger, principal and portfolio manager with Westport, described the Phoenix area as “a highly appealing, business-friendly market that continues to draw the attention of business owners.”
Located at 4141 N. Scottsdale Road, at the Intersection of Indian School Road, Scottsdale Financial Center II is a three-story Class A office building with both covered and underground parking. It’s currently 71 percent leased to Coventry Health Care, a diversified national managed healthcare company.
Jim Sadler, Dennis Desmond and Brian Ackerman of Jones Lang LaSalle represented the seller in the acquisition, and Sadler, along with Pat Williams and Harry Klaff, also with Jones Lang LaSalle, represented Coventry in the lease transaction.
Class A office space in the Scottsdale South submarket averaged a 20.4 percent vacancy rate at the end of the third quarter of 2011, according to Cassidy Turley BRE Commercial, San Diego. Year-to-date net absorption was nearly 34,000 square feet, and the average asking rent was $22.39, compared with a metro area Class A average of $24.04.
Pinnacle Peak Business Park is a 124,000-square-foot, four-building flex-industrial park in Deer Valley, Ariz. That property is 70 percent leased and according to Westport “will undergo some immediate upgrades and improvements.”
Through its various funds, Westport Capital Partners specializes in “a wide variety of opportunistic property and distressed debt situations.” The company has recently acquired retail, office and business park properties in Las Vegas and in La Jolla, El Cajon and Mission Viejo, Calif.