TerraCap Management Acquires Anchor Centre Office Park in Phoenix for $103.5M
PHOENIX — TerraCap Management LLC has acquired Anchor Centre, an office property in Phoenix’s Camelback Corridor, for $103.5 million. The two-building office park spans 333,014 square feet at the intersection of 24th Street and Camelback Road. KBS was the seller.
The buildings were constructed in 1984 and 1986, and KBS completed a multimillion-dollar capital improvement program upon its acquisition of the asset in 2014. KBS made upgrades to the lobby, common areas, restrooms and amenity spaces, which include a deli, tenant lounge, game room, fitness center, conference facility, outdoor patio and underground parking.
Anchor Centre is currently 93 percent occupied by tenants such as Humana Insurance, Northwestern Mutual and Black & Veatch.
“The property’s freeway access and close proximity to high-end retail is advantageous for the tenants,” says Steve Hagenbuckle, founder and managing partner of TerraCap. “The amount of in-migration and corporate relocations coming from the West Coast should assist in keeping occupancy high, allowing us to increase long-term value for our investors.”
The Phoenix office market showed signs of growth during the third quarter of 2020, posting just over 300,000 square feet of positive absorption, according to JLL.
Colony Capital provided debt financing for TerraCap with assistance from Kevin MacKenzie and Jason Carlos of JLL’s debt team. Cushman & Wakefield was hired for the leasing assignment and CBRE was retained as property manager.
Ben Geelan, Michael Leggett and Brian Ackerman of JLL represented KBS in the sale. KBS is a private equity real estate company and an SEC-registered investment adviser.
TerraCap is a privately held investment firm based in Naples, Fla. Its portfolio spans more than 7 million square feet of commercial assets, with more than $1 billion of assets under management.
— Kristin Hiller