Palm Plaza
Chandler, AZ
Net Rentable Area: 61,000 SF
Purchase Date: January 2006
Sale Date: March 2007
Description:
Palm Plaza is a 61,000 SF business park located in Chandler (Southeast of Phoenix), Arizona. The project was 77% leased to 28 tenants at the time of acquisition.
Strategy:
Ownership was a California pension fund, not well suited to manage a project with a high number of small tenants. Immediately upon closing, we aggressively began reconfiguring and building out the vacant spaces. Urban Capital was general contractor for the tenant improvements. Just as aggressively, we offered various broker incentives and were able to stabilize occupancy at 95% within 12 months of acquisition.
Anticipating a softening in the Phoenix market, it was decided to sell the project. It was sold after 15 months, resulting in a nice profit.