Mesa high-rise in foreclosure

by Angelique Soenarie The Arizona Republic Jul. 3, 2010 12:00 AM

Three years ago, Mesa officials estimated that in five years the blighted Fiesta District could make a comeback with major redevelopments through city and private investment efforts.

Since then, expansions at a children's hospital and a community college were completed. And upgrades to a nearby mall were done.

But then the credit and real-estate market crashed. A luxury condo and hotel development never materialized, and major retailers closed in nearby shopping centers, pushing back efforts to revitalize the district.

Now comes the latest blow.

Mesa's iconic 16-story Bank of America building is in foreclosure and is being entered into a non-judicial trustee sale. The sale is scheduled for 10 a.m. Aug. 11 at the law firm of Fennemore Craig, 3003 N. Central Ave. in Phoenix.

The building at Alma School Road and Southern Avenue is Mesa's tallest. It is outlined in blue argon lights and is visible for miles.

Business is expected to continue among tenants during the sale of the half-filled building, known as the Mesa Financial Plaza. Kevin Rude, a court appointed receiver with Phoenix-based Grubb & Ellis Management Services Inc., said the property will continue to be maintained, and service will be provided to tenants.

The 224-foot-tall building was purchased for $57 million three years ago by BPG Properties Ltd., a California private-equity-fund real-estate firm known for redeveloping underperforming properties and adding value to them. That following year, the firm invested more than $2 million, sprucing up Class A office space and upgrading the building's interior and exterior features.

Those efforts were part of the $500 million in capital investments that included upgrades and new developments in the Fiesta District.


Mesa high-rise in foreclosure