SOURCE: Equastone

January 12, 2007 12:49 ET

Office Building Sale Marks Recovery in North Downtown Phoenix

SAN DIEGO, CA -- (MARKET WIRE) -- January 12, 2007 --Equastone has announced the sale of Security Title Plaza (STP), a 12-story office building located at 3636 North Central Avenue in the North Downtown sub-market of Phoenix, Arizona. Alliance Commercial Partners purchased the building for $38 million. Investment entities affiliated with Equastone acquired the property for $14.75 million in October 2003. The sale price reflects a significant recovery in office building values in the North Downtown sub-market.

Security Title Plaza contains 217,247 square feet, with an adjacent six story parking garage. At the time of sale, STP was 86 percent occupied. Rob Rizzi of Broad Street Advisors represented both the buyer and seller. Rob Rizzi said, "I sold this property to Equastone three years ago. They did a remarkable job creating value and stabilizing the asset. Most impressive was their timing. They anticipated the rebound in the sub-market, which is a testament to their ability to evaluate the top office market opportunities."

According to David Bourne, Equastone's Chairman, the STP investment significantly exceeded Equastone's investment expectations. "We originally projected a 20 percent net annual return to investors based on adding value to an underperforming asset. In fact, we achieved a 65 percent annual return to investors due to strong demand for office space and rental growth throughout the Phoenix market, and a revival in the central business district in particular," Bourne said.

Equastone is a real estate investment firm that buys, fixes, leases and sells real estate in growth and recovery markets across the U.S. Ron Lack, Executive Vice President responsible for Equastone's properties in Arizona and other western states, said, "Equastone repositioned STP as a true Class A office building. We upgraded the common area lobbies, acquired adjacent vacant land to increase the amount of parking, and gave generous tenant improvement allowances to new and renewing tenants. Making physical improvements, and improving leasing and operations are key elements in adding value to underperforming assets."

Equastone is actively seeking additional properties in Phoenix, and intends to acquire $1 billion of office and flex properties over the next two years throughout the United States. Investment offerings should be directed to John Locke at and Chris Stai at Equastone and its affiliates currently have offices in San Diego, Denver, and Houston, and own properties in California, Arizona, Colorado, Nevada, Louisiana and Texas.

Equastone manages investment capital on behalf of Equastone Real Estate Funds, which are private equity funds for high net worth and institutional investors. For more information about Equastone and Equastone Real Estate Funds, call Mykel Sprinkles at 858-812-3261 or visit

Contact Information

  • Contact:
    Todd Backus
    Blue Horse & Trumpet
    P: (619) 955-7766
    E: Email Contact