Phoenix – BPM Real Estate Group in Portland, Ore. (Walter Bowen, principal) has returned to the Phoenix market by paying $39.25 million ($239.90 per foot) to buy a 163,607-square-foot back-office building located at 17500 N. Black Canyon Highway in Phoenix. W-EH Crossroads Holdings JV VII LLC, formed by Walton Street Capital LLC in Chicago, Ill. (Perry Pinto, et al., principals) and Everest Holdings in Scottsdale (Joe Blackbourn, principal), was the seller. The deal was brokered by Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix. Public records show BDC/Phoenix LLC (BPM Real Estate entity) acquired the property in a cash sale.
The two-story building, located on the west side of Interstate 17 and north of Bell Road, is fully leased to Consumer Cellular. In October 2014, BREW reported Walton-Everest Holdings paying $7.18 million ($68.31 per foot) to buy the property, which at that time was a vacant structure of 105,107 sq. ft. Originally built in 1987 and occupied by Sam’s Club until going dark in 2007, W-EH Crossroads Holdings JV VII LLC renovated the 11.458-acre project in 2009 and added 58,500 sq. ft. in a mezzanine level. The repositioning paid off as Consumer Cellular leased the entire building last year.
The investment marks the return to the Valley for Bowen, who exited the Phoenix-area market six years ago when he sold the 102-unit Desert Flower assisted living facility in Scottsdale for $24.6 million ($241,176 per unit). Bowen paid $9 million ($88,235 per unit) to acquire that property in 1999 while operating as BDC Advisors LLC. Desert Flower was sold as part of a portfolio deal that included 10 assisted living projects owned and operated by BDC Advisors. Following the portfolio sale, Bowen has diversified his investments to include office, hotel and multi-family properties.