Streamline Capital Buys Phoenix Office BuildingLink to article
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A trio of commercial real estate professionals sees opportunity in smaller, Class B office buildings in the Valley.
Streamline Capital Group, a newly formed investment group in the East Valley, paid $5 million to acquire a two-building, 39,000-square-foot office complex at 2600 N. 44th Street in Phoenix for the firm's first deal in late June. Streamline will touch up the landscaping, install new LED lighting, redo the parking lot and rename the office complex, which will be rebranded from Camelhead Business Center to The Grand on 44th.
"I've driven past this building for probably 10 years, and I never noticed it. And it's at a stoplight corner," said Dave Hrizak, a partner in Streamline. "The total remodeling time over the next six months, this building is going to look completely different than it does today."
Hrizak is joined by Frank Stirpe and Scott Roney as the partners in Streamline. The three collectively have experience in commercial brokerage, investment, legal, operations, project management and marketing proficiencies.
Hrizak said The Grand will be far enough away from the highly competitive office rental rates along Camelback Road but close enough to Loop 202, Interstate 10 and the Phoenix Sky Harbor International Airport where tenants would sense that they're getting a good deal.
“We had 19 investors for this project and their excitement for this acquisition has been through the roof. They’ve seen firsthand how easy investing can be with our unique Streamline process,” Stirpe said in a statement. “We look forward to transitioning this initial pool of investors into legacy investors and partnering with them for years to come.”
Hrizak expects the triple-net asking rental rate to be around $20 per square foot at The Grand. Streamline tasked Scottsdale-based LevRose Commercial Real Estate's Keri Davies and Jason Reddington to be the listing brokers for The Grand, which carried a vacancy rate of about 29% as of July 11. The building is home to professional service tenants such as Property Hub, Sierra Legal Group and The Neufeld Law Firm.
Streamline is currently based out of Hrizak's home office in Mesa. The partners will look at possibly finding an office in one of its future acquisitions, which Hrizak said will primarily be in Phoenix and the East Valley.
In a statement, Roney said he was looking forward to expanding his “legal and management experience in partnership with Dave and Frank and to support our shared vision to make Streamline Capital a significant and sophisticated participant in commercial real estate investments. I’ve learned a tremendous amount working on this transaction and am anxious to continue that trajectory.”