Dallas private equity fund Velocis makes big real estate buy in ScottsdaleFebruary 19, 2015
Terms of the acquisition were undisclosed. Velocis bought the property from a joint venture between Dallas-based Lincoln Property Co. and a fund managed by Oaktree Capital Management LP.
The three-story, 174,917-square-foot office building, called Camelback Square, sits at the southwest corner of Camelback and Goldwater roads at 6991 E. Camelback Road in Scottsdale. The property is 95 percent leased, with tenants including Ashton Woods, Mastro’s City Hall Steakhouse and Digital Airstrike.
Along with the steakhouse, the property also has a bistro, tenant meeting space and a common area outfitted with Wi-Fi for tenants. In the past few years, the property has undergone a series of renovations, including new building entrances, a modern lobby, a courtyard water feature and patio feature and updated common area finishes.
The Old Town Scottsdale office market has been extremely popular, with steadily rising rents and property values, Velocis Principal Paul Smith said.
“Camelback Square is our first acquisition in the Phoenix market, and one we hope to build on as we pursue additional assets in the Southwest region,” Smith said.
Since becoming active in real estate investment in 2011, Velocis has bought 16 office properties in Texas, Colorado, Florida, Georgia and North Carolina.
In June 2011, the previous ownership group bought the property from a special servicer and with the help of brokers from Lee & Associates has leased up the building from 50 percent to now about 95 percent of the property leased by tenants.
CBRE’s Barry Gabel, Chris Marchildon, Kevin Shannon, Ken White and Paul Jones led the marketing of the building.The Old Town Scottsdale property will continue to be managed by Lincoln Property Co. for Velocis.