Cox Health Systems buys SFG building

The United States Bankruptcy trustee in Arizona Oct. 9 approved the sale of the Stevens Financial Group Building at 3901 S. Fremont to Cox Health Systems for $4 million.

According to Ken Schwab of Wilhoit Properties, who handled the sale, the building was listed at $4.5 million.

"Cox was a very able body and I think the speed of the ability for them to close on the transaction was important," said Schwab.

The 27,500-square-foot building on a 9.2-acre parcel of land could expand upward three more stories, which would give the structure a total of 75,000 square feet.

SFG has a lease on part of the building until the end of January 2002, said Bob Bezanson, executive vice president of Cox Health Systems.

Butler Rosenbury & Partners have been hired as architects, he said. "We have multiple needs, such as the potential for relocation of our insurance company." Also under consideration is more space for doctor's offices, or some relief for expansion within Cox South such as relocating some services like endoscopy, radiology, or computer information services, Bezanson said.

One of the benefits of the new acquisition is that it is contiguous to other Cox land and is reachable through internal roads, Bezanson said.

Constructed in 1998 by Carleton Builders, SFG listed the building among its assets, with a value of $6.8 million. Great Southern held a $1.6 million security interest in the building. Bezanson said the most recent "as is" fair market value appraisal in June was for $4.3 million, "so this wasn't a fire sale.'"

SFG filed for reorganization bankruptcy under Chap. 11 of the U.S. Bankrupt-cy Code March 19. At least 3,500 of the company's creditors are in Missouri, but the case was filed in Arizona, where Colonial Trust Company, an indentured trustee for SFG, is located.

(This article originally appeared in the Oct. 29 issue of the SBJ Daily Update, a daily e-mail update available only to SBJ subscribers.)