Transwestern Acquires $58.85 Million Lincoln Towne Centre in Scottsdale

Lincoln Towne Centre, Scottsdale, AZ
Lincoln Towne Centre, Scottsdale, AZ

SCOTTSDALE, AZ. –– Equus Capital Partners, Ltd. (Equus), one of the nation’s leading private equity real estate fund managers, announced the sale of Lincoln Towne Centre, a two building property totaling 226,112-square-feet located at 4150-4250 N Drinkwater Boulevard in downtown Scottsdale, Arizona. Acquired by Transwestern Strategic Partners on behalf of its TSP Value and Income Fund for $58,850,000 ($260 PSF). Transwestern Strategic Partners is the discretionary investment management arm of Transwestern Investment Group based in Dallas, TX.

Situated at the intersection of Drinkwater Boulevard and Indian School Road, Lincoln Towne Center provides easy access to the Loop 101 and is directly across from the Scottsdale City Hall. It is also in close proximity to the nearly two million square foot Scottsdale Fashion Square, the Scottsdale Waterfront development and the W Hotel, providing a 24/7 environment within walking distance to numerous retail amenities, restaurants, hotels and condo and apartment homes. The property also features a rare, four-level subterranean parking structure allowing for a parking ratio of 4.1 spaces per 1,000 square feet. Nearly half of the property is occupied by investment grade tenants including CNA (S&P: A), Catlin (S&P: A) and EMC2 (S&P: A).

Chris Toci, Chad Littell, Jerry Noble, Pat Devine and Greg Mayer of Cushman & Wakefield of Arizona represented the seller in the disposition.

The acquisition of Lincoln Towne Centre in February 2012 was the first asset acquired by Equus Capital Partners on behalf of its value-add fund, BPG Investment Partnership IX, L.P. “Lincoln Towne Centre was a classic value-add office investment for our firm”, said Jonathan Praw, Vice President and Head of West Coast Operations for Equus Capital Partners, Ltd. while adding “When we acquired the complex it was just 67% leased while the submarket vacancy rate was in the mid-20% range. We were able to quickly improve occupancy to 99% at the time of sale and benefited from the 30% increase in Downtown Scottsdale rental rates.” Mr. Praw oversaw the acquisition, reposition, and disposition efforts.

To learn more Toci, Littell, Noble, Devine and Mayer can be contacted at the Cushman & Wakefield office at 602.253.7900.


Biltmore Commerce Center
Biltmore Commerce Center Aerial (courtesy photo)

PHOENIX, AZ — Cushman & Wakefield of Arizona has been selected to handle leasing of the prestigious Biltmore Commerce Center, a Class A office complex at 3200 East Camelback Road in Phoenix.

The property, which was recently purchased by DPC Development Company of Denver, will undergo a significant modernization and re-positioning in the Camelback Corridor.

The mid-rise office building, which contains approximately 258,348 square-feet of space, was constructed in the mid-1980s. The mid-rise building is situated on approximately 7.53 acres of land that includes a six-level parking structure. Anchor tenants at the property include HDR, North American Title and Accenture.

DPC Development Company is a value-add investor that is known for presenting their buildings in a first class manner and for attracting some of the most prestigious tenants. The company has owned other properties in Arizona and will soon embark on upgrading this asset.

Biltmore Commerce Center’s interior is designed around a sizable atrium space with a large water feature. “The owner has hired Oz Architecture, a very dynamic and creative firm based in Denver, to create a tenant-focused interior that addresses the needs and desires of today’s office users,” says Jerry Noble, senior director with Cushman & Wakefield. “The new ground floor will feature abundant, modern seating areas and Wifi access for meetings and individual work. A new, re-designed water feature and interior landscaping will be included in the design. The owner also is considering the addition of a coffee or restaurant user on the ground floor. This owner is committed to more than a beautification effort and is dedicated to creating a business environment that meets the current desires of tenants and their employees.”

DPC Development Company also has undertaken a re-landscaping effort on the exterior at the corner of 32nd Street and Camelback Road. Simpler plantings and extensive lighting are being installed to improve the curb appeal of the building during both day and night.

“We were proud to acquire this signature asset on the Camelback Corridor,” said Justin Lutgen of DPC Development. “We have been looking for more opportunities in the Arizona marketplace and this asset provides great upside potential. Biltmore Commerce Center’s phenomenal location and 70 percent occupancy offers us the ability to improve the value of the property and lease the remaining space as the market improves.” Biltmore Commerce Center is one of the few buildings in the Camelback Corridor that offers 45,000+ square feet of contiguous space for a large user.

Jerry Noble, Pat Devine and Greg Mayer of Cushman & Wakefield will serve as exclusive leasing agents for Biltmore Commerce Center.

The Cushman & Wakefield team of Noble, Devine and Mayer can be reached at (602) 253-7900.