Class A 3131 project enjoys highest average occupancy of any office building in metro Phoenix history
PHOENIX, Arizona, Sept. 22, 2023 – Lincoln Property Company’s Southwest division, LPC Desert West (LPC), has sold the landmark 3131 and 3133 Camelback to an entity of Presson Corporation, led by local investor Daryl Burton for $72.1 million. With a premier location at the southwest corner of 32nd Street and Camelback Road, in the heart of the Camelback Corridor, the project boasts the highest average occupancy rate of any office building in the history of metro Phoenix.
Barry Gabel, Chris Marchildon and CJ Osbrink of Newmark represented LPC in the building sale. LPC will retain leasing and management duties for the buildings.
The project spans 295,401 square feet in two adjacent Class A, multi-story office buildings at 3131 and 3133 E. Camelback Rd. in Phoenix. This includes 3131 Camelback, offering 196,332 square feet in four stories, and 3133 Camelback, totaling 99,069 square feet in three stories, along with an on-site parking garage.
The buildings sit minutes from State Route 51 and I-10, and within walking distance to a selection of high-end dining, retail and luxury housing. They are a short drive to Biltmore Fashion Park, Arizona Biltmore Resort and Golf Club, and The Camby Hotel.
“These buildings have been rigorously managed to ensure their stability and continued appeal to the modern office tenant,” said Lincoln Property Company Executive Vice President David Krumwiede. “Our occupancy and rental rates at 3131 and 3133, along with a great mix of tenants, have made this a highly successful investment for us.”
“The strategies put in place by Lincoln Property Company have ensured this property’s operation at its highest and best levels,” said Burton. “This acquisition is an exciting opportunity, giving us entrée into the Camelback Corridor with a very prominent investment presence.”
Owned and managed by LPC since 2017, 3131 and 3133 Camelback have enjoyed significant renovations under an institutional-quality asset management strategy. This includes the renovation of its two-story atrium lobbies, contemporary new furnishings, a new tenant conference facility, on-site coffee bar, upgraded and shaded outdoor tenant amenity area, restroom renovations, modernized tenant corridors and new front entryway and landscaping.
LPC also completed improvements to secure the buildings’ Energy Star Certification by the U.S. Environmental Protection Agency (EPA), denoting an average 35 percent less energy use than typical buildings and the release 35 percent less carbon dioxide into the atmosphere.
Collectively these efforts have helped 3131 and 3133 Camelback maintain an average 90 percent occupancy since its delivery to market in 1998.
“The environment at 3131 and 3133 is extremely conducive for growth,” said Lincoln Property Company Senior Vice President John Orsak. “That has allowed us to attract and retain a broad mix of companies that we’re confident will take this project and its tenants into the next decade of success.”
As the leasing agent for the buildings, LPC since 2022 has completed more than 100,000 square feet of new lease commitments or renewals at the 3131 and 3133 buildings. Among the most significant of these new and existing tenants are:
- New leases by Stewart Title, Renaissance Financial, HKS Architects and Zoom Living totaling 33,254 square feet, 16,891 square feet, 7,022 square feet and 4,235 square feet respectively.
- An expansion by Northmarq, who now occupies 10,501 square feet.
- Renewals totaling approximately 25,500 square feet by tenants that include Post Integrations, SRS Real Estate, TAIT Development, K-Force and St. Louis Bank.
For more on leasing, investment or property management opportunities with Lincoln Property Company in the Desert West region, please call David Krumwiede or John Orsak at (602) 912-8888.