Buchanan Street Partners announced two acquisitions in the greater Phoenix area, including Vue Park West, a 260-unit luxury apartment complex in Peoria, Ariz., and the 106,077 SF Mesa Corporate Center office complex in Mesa, Ariz. The acquisitions reflect Buchanan Street’s continued investment strategy in the Phoenix area, a market where the Newport Beach, Calif.-based investor has been an active buyer of value-add commercial and multifamily investments.
Buchanan Street, in partnership with Denver-based Baron Properties, paid $30 million for the Vue Park West (formerly known as Alta Park West), or approximately $115,300 per unit. Buchanan was attracted to the project’s current cash flow and the prospect for rent growth in the West Valley market. Completed by Wood Partners in 2008, the community has enjoyed an occupancy rate of more than 90% since 2010, outperforming submarket occupancy over the same period.
Buchanan Street also recognized the value of Vue Park West’s location within walking distance of numerous retail amenities at the adjacent Park West lifestyle center, and the property’s convenient access to the Agua Fria (101) Freeway at W. Northern Avenue. Baron will make modest renovations that will allow the partnership to maximize the property’s potential.
“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 Partners. Buchanan Street has targeted California, Arizona, Nevada and Texas for investments in the $10M to $100M range.
Buchanan Street has also acquired Mesa Corporate Center, a two-story Class A office building, for $13.2 million from seller Parkway Properties. The project, located at 1001 W. Southern Avenue in Mesa, was 89% leased at the time of the sale, with a credit tenant roster that included Allstate Corporation and Carrington College (DeVry).
Buchanan Street acquired the property at a 40% discount to estimated replacement cost and was attracted to the project’s current cash flow and opportunity to participate in improving fundamentals as leases expire.
“Mesa Corporate Center offers a first-class office environment in a location that complements Buchanan’s existing Phoenix-area portfolio, allowing the firm to broaden its offerings to existing and potential tenants and achieve further economies of scale in the Phoenix market,” said Brian Payne, vice president at Buchanan Street Partners.