Buchanan Street Picks Up Office, M-F Properties for $43M
- Apr 15, 2014
Newport Beach, Calif.-based Buchanan Street Partners has teamed with Baron Properties of Denver to purchase Vue Park West, a 260-unit luxury apartment community in Peoria. The partnership paid $30 million for the complex, or $115,300 per unit.
Buchanan Street is currently on a buying spree, with eyes on California, Arizona, Nevada and Texas. The company is targeting properties in the $10 million to $100 million range.
“Vue Park West is an excellent example of the caliber of core-plus and value-add investments that we are making in select Western markets,” said Bob Dougherty, partner at Buchanan Street, adding that the venture was drawn to the asset’s cash flow and the prospect for rent growth in the West Valley market.
Completed by Wood Partners in 2008, the asset has reportedly enjoyed an occupancy rate of more than 90% since 2010, outperforming its submarket during that period.
Formerly known as Alta Park West, the community is located at 9680 W Northern Ave., within walking distance of the Park West lifestyle center and minutes away from Westgate Entertainment District. It also offers easy access to the Agua Fria (101) Freeway at West Northern Avenue.
The complex is a mix of studio, one-, two-, and three-bedroom units with island kitchens, vaulted ceilings, washer and dryer in the unit, garden tub and oversized closets. Common amenities include a business center, swimming pool, fitness center, pet park, eco-friendly environment, covered parking and gated access. Additionally, the new ownership plans to add value and re-position the property by implementing a series of improvements.
Further expanding its Phoenix footprint, Buchanan Street has acquired Mesa Corporate Center, a two-story Class A office building in Mesa, for $13.2 million. The seller was Parkway Properties in Orlando, Fla.
Located at 1001 W. Southern Avenue, the 106,077-square-foot property was 89 percent occupied at the time of closing, with a credit tenant roster that included Allstate Corp. and Carrington College (DeVry).
According to Brian Payne, vice president at Buchanan Street Partners, Mesa Corporate Center is a first-class property in a premier location and has amenities that broaden the firm’s offerings to present and potential tenants, and achieve further economies of scale.
Buchanan Street picked up the property at a 40% discount to estimated replacement cost and was attracted to the project’s current cash flow and the opportunity to participate in improving fundamentals as leases expire.
Photo credit: Vue Park West Apartment Homes in Peoria, Az. via Official Website