News
NEW MONEY GOES WEST
March 5, 2012
| The latest BPG Properties fund is off with its first major purchase. This time, the private equity fund manager is buying in Scottsdale, Ariz. (Hope they brought some water.) |
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| Through its new $110M BPG Investment Partnership IX LP, BGP just acquired Lincoln Towne Centre, a two-building, 224k SF Class-A office complex in downtown Scottsdale for $34.2M from Lincoln National Life Insurance Co. COO Art Pasquarella says BPG is already familiar with the area, having bought Scottsdale Financial Center I in 2008. (Secretly, they just love the golfing out there.) Lincoln Towne Centre is 67% occupied, with such nationally known tenants as C.N.A. National Warranty and EMC and Art believes his firm captured this property at 60% of replacement cost. |
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| Here's the property. BPG Fund IX (which will raise $250M to $300M when all's said and done) is a value-add fund that's seeking non-stabilized properties that “will have some element of repositioning needed.” The plan is to then resell within three to seven years. About 30% of the fund will purchase office, but nearly half the proceeds of the fund will look to buy multifamily across the country (with another 20% going to industrial and retail). Art says BPG sees some opportunities in Philly but not likely in the CBD, where trophies are going for a premium at this point. “We're under agreement on two apartment communities in the Mid-Atlantic states,” he says. “There's some upside in a lot of multifamily rental areas.” |
