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Published:   May 30, 2014
Volume:   XX    Number:   21

KBS REALTY ADVISORS AFFILIATE PAYS $85.1 MILLION FOR ANCHOR CENTRE OFFICE COMPLEX

Phoenix - An affiliate of KBS Realty Advisors in Newport Beach, Calif. (Peter Bren, Charles Schreiber, Jr., co-founders) paid $85.1 million ($252.57 per foot) to purchase the Anchor Centre office property located at the southeast corner of Camelback Road and 22nd Street in Phoenix. The 336,939-square-foot project was acquired by KBSIII Anchor Centre LLC, a company formed by KBS Real Estate Investment Trust III Inc. The REIT is externally advised by KBS Capital Advisors LLC, which is an affiliate of KBS Realty Advisors. The seller was AG/DWC Anchor Centre LLC, a joint venture formed by Angelo, Gordon & Co. LP in New York City, N.Y. (John Angelo, Michael Gordon, partners) and David Warren of DW Capital Partners LLC in Phoenix. The deal was brokered through Chris Toci of Cushman & Wakefield of Arizona Inc. in Phoenix, and Mike Beall and Chris Walker of Cassidy Turley in Phoenix. Anchor Centre is comprised of a 6-story, 200,576-square-foot structure at 2201 E. Camelback Road and a 4-story, 136,363-square-foot building at 2231 E. Camelback Road. Maricopa County records show the buyer acquired the office property with a $53.2 million loan from U.S. Bank. The two-building project, which was built in 1984 and 1986, is 78 percent occupied. The leasing has been handled by Beall and Walker and the Cassidy Turley agents are expected to keep that assignment. The purchase price is almost $100 more per foot than the seller paid to buy the property 3½ years ago. In November 2010, BREW reported the Angelo, Gordon/DW Capital venture paying $52 million ($154.10 per foot) to acquire Anchor Centre. KBS Realty Advisors, an SEC-registered investment advisor, and its affiliates have completed $30+ billion in transactions since 1992. KBS Realty is a long time investor in the Valley office market. Over the past 15 years, the company and its affiliates have bought and sold several hundred millions of dollars worth of office space in the Phoenix area. KBS Realty is interested in additional office investments in the Phoenix as well as other major employment growth markets in the U.S. In its last Valley investment reported by BREW in September 2011, a fund managed by KBS Realty paid $137 million ($312.02 per foot) to buy a 439,070-square-foot office project in Tempe that is leased to the University of Phoenix. Anchor Centre is the third Camelback Road office property that has sold in the past 18 months. In August 2013, BREW reported a venture formed by DPC Development Co. in Greenwood Village, and Bridge Investment Group Partners LLC in Murray, Utah paying $42.773 million ($164.67 per foot) to buy a 259,745-square-foot office building at the northeast corner of 32nd Street and Camelback Road. The three-story project, called Biltmore Commerce Center, is at 3200 E. Camelback Road. At year-end 2012, a company formed by Hines Interests Limited Partnership in Houston, Tex. paid $81 million ($268.03 per foot) to acquire a 302,209-square-foot office project at the southwest corner of 24th Street and Camelback Road. The 8-story property, with an address of 2375 E. Camelback Road, is known as 24th At Camelback. KBS Realty Advisors regional pres. is Rodney Richerson . . . call him at (949) 417-6500. The contact at Angelo, Gordon is Will Abbate . . . reach him at (310) 777-5445. Contact Warren at (602) 810-8494.





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