Equus Capital Partners, 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 Blvd. in Scottsdale.
It was acquired by Transwestern Strategic Partners on behalf of its TSP Value and Income Fund for $58.85 million.
Transwestern Strategic Partners is the discretionary investment management arm of Transwestern Investment Group based in Dallas, TX.
Chris Toci, Chad Littell, Jerry Noble, Pat Devine and Greg Mayer of Cushman & Wakefield of Arizona represented the seller in the disposition.
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).
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. “When we acquired the complex it was just 67 percent leased while the submarket vacancy rate was in the mid-20 percent range. We were able to quickly improve occupancy to 99 percent at the time of sale and benefited from the 30 percent increase in Downtown Scottsdale rental rates.”