By: Paul Dionne | Vizzda.com
Rialto Capital Management—a wholly owned subsidiary of Lennar Homes—has acquired One 11 Monroe, the lender-owned office tower at the southwest corner of Monroe Street and 1st Avenue in Phoenix, for $22m or $86.11 per rentable square foot. Rialto paid $2m in cash for the property and secured an additional $20m in new debt with Jeffries LoanCore, which is itself a joint venture between the investment bank Jeffries and the real estate investment arm of the Government of Singapore. The seller, GE Capital, acquired the property after foreclosing on a $41.4m note by way of a $36.4m credit bid.
The 19-story office tower, also known as the First American Building, totals 255,477 rentable square feet on three quarters of an acre in the Down Town Business Core. It was completed in 1964 and features a 2-story sub-grade parking structure with 296 stalls. The property has a colorful history: in 2003 the property reverted deed-in-lieu to LNR Partners as special servicer for a $17m note issued by a CMBS entity underwritten by Credit Suisse. It was acquired from the lender for $20m in 2005 and in 2007 a tenant-in-common group paid $40m for the property. The TIC group put $10.475m down and GE Capital issued the above referenced $41.4m for a loan-to-value of 103.5%.