Scottsdale Technology Center Sells for $15.3M

SCOTTSDALE, AZ-International Capital Partners of Phoenix has closed its third acquisition in about three weeks. The latest buy is the three-building Scottsdale Technology Center, an office and industrial park that brought $15.3 million.

At the end of July, International Capital Partners purchased Phoenix’s Lincoln Center in Phoenix. In early August, it was the Chandler and Roeser business parks, also in the metroplex. Now, it’s the 151,490-sf Scottsdale Technology Center along North Hayden Road, developed in 1985 and just sold by IDS Life, an entity of American Express.

Jan Fincham, Patrick Dempsey, Mark Linsalata and Mike McQuaid, all of Lee & Associates Arizona in Phoenix, brokered the transaction for buyer and seller. Fincham tells GlobeSt.com that IDS Life kept to its game plan and sold the park after owning for just four years. The park was only 60% occupied at sale time. Fincham stresses the park maintained good occupancies and supported rent increases when the four-year run is taken into full perspective. The existing tenant roll includes Ryland, Go Daddy Software and International Color.

Fincham says the property has room for even larger rent increases, a surefire upside potential for the new owner. He estimates current rents, ranging from $12.50 per sf to $13.50 per sf triple net, are riding about 10% below the surrounding market. The buildings are designed with a high percentage of office finish-out.

The deal’s sweet spot, says Fincham, is that IDS had no debt against the property to assume, making it particularly attractive to International Capital Partners. Thus, the buyer could complete the deal with new acquisition debt and take advantage of the rock-bottom interest rates now available.