Contact Us
News

NEW MONEY GOES WEST

Philadelphia
NEW MONEY GOES WEST
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.)
BPG's COO Art Pasquarella INVESTMENT PARTNERSHIP IX FUND scottsdale lincoln towne centre
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.

BPG's COO Art Pasquarella INVESTMENT PARTNERSHIP IX FUND scottsdale lincoln towne centre
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.”