Firm Acquires 138,000 SF Office Building for $20.5 Million Located Near Sky Harbor Airport
PHOENIX January 11, 2005 Younan Properties (YPI), one of the fastest growing privately held commercial real estate and hospitality investment firms in the U.S., has recently purchased its third office property in Phoenix: Four Gateway, a 138,000 SF, Class A office building from Presidio Investments for $20.5 million. The four-story office building is located at 444 N. 44th Street near the Phoenix/Sky Harbor Airport and was 95% occupied at the time of sale. Built in 1998, the building's key tenants include: Value Option and Eclypsis.
Supported by the last two quarters of market performance, we are continuing to see solid positive absorption in the Phoenix office market and a strong office employment demand going forward, which has strengthened the market's fundamentals, said Zaya S. Younan, chairman & CEO of Younan Properties. In addition, the market is experiencing a significant population and corporate migration to Arizona and Phoenix, which will strengthen the demand going forward for office space. Our goal is to exceed our Phoenix office portfolio by 1.5 million square feet by the end of the first quarter.
Younan Properties now owns more than 812,000 SF of office property in Phoenix including two of the largest buildings in this CBD - Central Plaza (400,000 SF) and Meridian Bank Tower (275,000 SF).
The buyer, Younan Properties, represented itself. The seller, Presidio Investments, was represented by Glenn Smigiel, Steve Brabant and Bob Young of CB Richard Ellis. Greg Zack with ProMark Capital Group was responsible for financing the transaction.
This is the second transaction in less than a year we have closed with YPI and our goal is to continue this strong business relationship. Zaya and his team have very few decision layers to work through, therefore they move quickly when responding to all issues and challenges, said Brabant. In this particular situation, YPI had to deal with an extremely compressed timeframe in order to meet the sellers closing date requirement. Due to YPI's creative business strategy, this deadline was met.