By: Paul Dionne | Vizzda.com
Westport Capital Partners has closed its second disposition of a
major opportunistic investment in the Phoenix market with its sale of the
Camelback Arboleda on Thursday for $24.9m. or $139.27 per square foot. The
buyer, EBF & Associates—a privately held registered investment advisor
specializing in alternative investments—paid cash for the property.
The 178,792 net rentable square foot, four-story office
building is located east of the intersection of Highland Avenue and 16th
Street in Phoenix. The project sits on 6.73 acres and was completed in 1982. It
features a 42,129 square foot floor plate and a four-story detached parking
garage which, when combined with surface parking provides a parking ratio of
4.15 per 1,000 square feet.
Westport acquired the property on March 20th,
2012 for $16.6m in an all cash sale. At the time of sale, the building was 81%
occupied. Westport was able to secure take-out financing with Bank of America
to the tune of $11.5m on August 1st, 2012. So net of operational
income, Westport was able to realize a 25% annualized unlevered rate of return
and an 194% annualized levered rate of return over a two year holding period.
On February 17th of this year,
Vizzda reported on Westport’s sale of five flex office properties in the Agave
Center for $29.593m or $134 per square foot. Westport had acquired the 220,000
square foot facility as well as an adjoining 4.64 acres of vacant land eighteen
months prior for $23.3m. The land was sold after a year for $1,284,622 and the
deal had $15.77m in financing with Bank of America for an unlevered rate of
return of 21.6% and a 206% levered rate of return, annualized over the life of
the investment.
