BH Properties Acquires a 428,000 SF Office Complex in Phoenix for $25 Million

PHOENIX - Dec. 17, 2014 - PRLog -- BH Properties, a Los Angeles-based firm that specializes in acquiring and repositioning challenged or distressed commercial real estate properties, has purchased The Plaza at Squaw Peak, a 428,000-square-foot office complex located directly off Route 51 at North 16^th Street and East Morten Avenue, for $25 million. The transaction closed on Dec. 17 and is the firm’s highest valued asset purchased to date.

“As our 100^th property acquired, this is a significant milestone in the evolution of our company,” said Steve Jaffe, chief investment officer and principal at BH Properties. “It is also the first single asset investment in the $25 million range, and thus marks the beginning of the next phase of our buying strategy, which focuses on higher value assets with strong value add performance metrics that will expand our portfolio.”

BH Properties purchased the property from an institutional private real estate investment firm, who had acquired the asset as a part of a portfolio. The seller turned to BH Properties for its reputation in acquiring troubled assets and ability to achieve a year-end closing. Acquisition financing was provided by Opus Bank .

“Opus Bank, the fastest growing bank in the Western United States, with a commercial banking presence in, and commitment to, all of the major metropolitan markets up and down the West Coast, was able to respond to BH Properties’ request for a quick closing,” said Dan Borland, EVP and president of Commercial Real Estate Banking for Opus Bank.  “At Opus Bank, we pride ourselves on our ability to meet our clients’ needs; and in this case, we closed the loan in two weeks.”

Centrally located in the revitalized area of the Camelback Corridor in North Central Phoenix, the office complex consists of three buildings on a large 24.15-acre parcel, which appealed to BH Properties as it also offers a variety of redevelopment opportunities for the future.

“This property is primed to benefit from the revitalization of the surrounding area,” said Jaffe. “Backed by an increase in tenant demand and job growth with a limited supply due to the lack of recent development, the Phoenix office market is on the upswing as rental rates continue to increase.”

The development’s current tenant base includes law firms, financial service providers, administrative users, engineering firms, call centers, medical service providers, marketing agencies, and title companies.

Rachelle Strole, Jason Hersker, Stephen Herman, Rachael Cisco and Scott Smith, of Capital Asset Management represented both the seller and the buyer.

Within the last year, BH Properties has expanded its Southwest portfolio acquiring a variety of properties in the greater Phoenix area, including Gilbert Town Square, a 159,000-square-foot retail shopping center; Papago Crossing, a 180-unit multifamily property; Islands Shopping Center, a103,082-square-footsquare foot retail center; Ross Plaza, a 64,744-square-foot retail center; and a 62,000-square-foot warehouse.

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About BH Properties, LLC:

Founded in 1997, BH Properties is a Los Angeles-based commercial real estate investment company that focuses primarily on troubled assets in the industrial, multi-family, office and retail markets. With regional offices in Dallas and Salt Lake City, BH Properties has developed its own distinctive acquisition strategies in 15 states and become one of the repositioning experts in its core markets including California, Arizona, Nevada, Utah, Colorado, and Texas. For more information, please call (310) 820-8888 or visit www.bhproperties.com.

About Opus Bank:

Opus Bank is an FDIC insured California-chartered commercial bank with over $4.7 billion of total assets, $3.7 billion of total loans, and $3.5 billion in total deposits as of September 30, 2014. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Opus Bank offers a suite of treasury and cash management and depository solutions and a wide range of loan products, including commercial business, healthcare, technology, multifamily residential, commercial real estate, and structured finance, and is an SBA preferred lender. Opus Bank is an Equal Housing Lender. Opus Bank operates 58 banking offices, including two in the Phoenix metropolitan area of Arizona, 32 in California and 24 in the Seattle/Puget Sound region in Washington. For additional information about Opus Bank, please visit our website: www.opusbank.com.