Younan Properties Inc. has bought downtown Phoenix’s largestbuilding for $21 million from MetLife. Central Plaza, a 400,000 sq. ft., Class-A office tower, was only 60% occupied at the close of the sale.
"Phoenix is one of the few markets that is oversold but is now well positioned for a major recovery, which is expected to start towards the end of 2004, early 2005," said Zaya Younan, chairman and CEO of Younan Properties, a privately held commercial real estate and hotelfirm based in Woodland Hills, Calif. "Our goal was to own the largest building in this market with a high vacancy rate in order to take advantage of the recovery when it occurs."
Younan predicts that thewill stabilize by midyear 2006, when he believes it will reach 90% occupancy. In the meantime, the company will spend $5 million to renovate both the interior and exterior of the building.