CBRE Announces Sale of Phoenix Creative Office to Private Colorado-Based Investor for $5.76 Million

PHOENIX, ARIZONA — CBRE announced the sale of a creative office property in Phoenix’s Warehouse District to a private Colorado-based investor for $5.76 million or $274 per square foot.

CBRE’s Geoff Turbow, Gary Cornish, Matt Pourcho and Anthony DeLorenzo represented the seller, a local private investor. In conjunction with the sale, CBRE’s Jimmy Cornish, Corey Hawley, and Sean Spellman secured the tenant, Maricopa County Regional School District, which signed a long-term triple-net lease. CBRE Debt & Structured Finance’s Garrett Stasand arranged the financing on behalf of the buyer.

The 21,048-square-foot property, located at 20 W Jackson Street, was originally built in 1944 as a train depot and has since been converted into a creative Class A office space, featuring historic brick, oversized windows, original 20’ wooden ceilings and original flooring. The property also features an outdoor patio with trees and grass.

“Creative office in Phoenix’s Warehouse District remains in high demand, given the limited inventory of move-in ready options,” said CBRE’s Jimmy Cornish. “We expect this trend to continue as this neighborhood and surrounding areas continue to improve with the extension of the downtown light rail, bringing new entertainment and dining amenities to the area.”

Added Gary Cornish, “Investors are very bullish on the Warehouse District. This historic neighborhood presents upside potential that is extremely attractive as capital continues to aggressively seek out opportunities across all product types in the Phoenix market.”

Single-tenant office buildings within Greater Phoenix are in high demand, evident by the current 4.11 percent vacancy rate, according to CBRE research. Out of the 337 office buildings between 10,000 square feet and 30,000 square feet within a 5-mile radius of 20 W. Jackson Street, only three are currently available for a single user to lease and only one of those options is creative office.