PHOENIX — TIAA-CREF has sold Biltmore Commerce Center, a 262,875-sf, class A office building to the Muller Co. of Southern California, and its New York City based equity partner, BlackRock Inc., for $58.8 million. Muller has a $500-million portfolio in Greater Phoenix, but it's BlackRock's first office investment in the area.

Biltmore Commerce Center, located at 3200 E. Camelback Rd. on 7.25 acres, was built in 1985 on 7.25 prime acres. The asset was 100% leased at sale time.

According to Phil Marino, principal with locally based Intercon West Realty Advisors , the buyer was attracted to the property for many reasons, one of which is its prestigious location. Plus, he adds, "this was set for a long-term hold.
They thought it was a good, stable asset. That's an important criteria for the equity partner, BlackRock." Marino teamed with Mark Seale in CB Richard Ellis Inc's Phoenix office to represent the buyer. The New York City-headquartered seller was represented by Barry Gable and Mindy Korth with Trammell Crow Co. in Phoenix.

Marino tells GlobeSt.com that the rents quoted for tenants are under market, with a reasonable amount of roll anticipated during the next 24 to 36 months. "There are larger rents in properties around this one," he adds. Tenants include HDR
Engineering Inc., Richmond American Homes, Oracle Corp., North American Title Co. and Lee & Associates Arizona's Phoenix office.

The new owners plan to upgrade the property, but the amount to be invested wasn't available by publication time. CBRE's Seale has secured the leasing assignment.