Phoenix, Arizona – CBRE has completed the sale of a 175,835-square-feet, class A office building in the Camelback Corridor area of Phoenix. Located at 5090 N. 40th Street, the building commanded a sale price of $42.6 million, or approximately $242 per square foot.
Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the transaction. The seller was a joint venture between Lowe Enterprises and J.P Morgan Asset Management of Los Angeles, Calif. The buyer was Vancouver, BC, Canada-based City Office REIT, Inc.
The seller originally purchased the property as part of a portfolio in December 2013. At the time, the property was approximately 50 percent leased. Over the past 3 years, the seller instituted a capital improvement plan, investing millions into the building, as well as an aggressive marketing and leasing program, bringing the property to just over 90 percent leased at time of sale.
“The Camelback Corridor has always been one of the strongest employment corridors in the Valley, and 5090’s tenancy reflects that,” said CBRE’s Fijan. “Currently, the property is home to major corporate employers, including Bar-S-Foods, Kudelski Group and Beyond Trust Software, among others.”
Fijan also points to the submarket’s overall health as a positive indicator for the Valley’s office market.
“The Camelback Corridor has enjoyed a resurgence in 2016. As one of the top performing submarkets in all of metro Phoenix in terms of net absorption, the Corridor’s class A vacancy rate currently sits at 16.3 percent – a huge improvement from the 21.6 percent of a year ago.”
Located in the heart of the Camelback Corridor, 5090 N. 40th is strategically located, offering quick, easy access to Arizona Highway 51 and the Loop 202 Freeway. Sky Harbor International Airport is just 6.7 miles away, and Arizona State University is less than 10 miles away.
CBRE’s Jerry Roberts, Corey Hawley and Pat Boyle have been retained to market and lease the property.