Phoenix, Arizona -- The investment sales team of Chris Toci and Chad Littell of Cushman & Wakefield successfully closed the sale of a north Phoenix suburban office building located at 25700 North Norterra Parkway in Phoenix, Arizona.
“The exceptional design, construction, and development attributes of Norterra West One coupled with the pristine credit of the tenant and the lengthy lease duration made this marketing effort the most competitive of my 22-year investment brokerage career”, said Chris Toci, executive managing director of Cushman & Wakefield.
The property was marketed for sale by the Cushman and Wakefield team on behalf of USAA Real Estate of San Antonio, Texas, in cooperation with local Tempe-based developer Metro Commercial Properties, Inc. The purchaser was JDM III Norterra, LLC an investment fund managed by JDM Partners (Jerry Colangelo, David Eaton, Mel Schultz).
The 3-story suburban office building is located along the I-17 Black Canyon Freeway in north Phoenix, within the master planned community of Norterra. The building was completed in June 2016 as a speculative investment office development by the team at Metro Commercial Properties and USAA Real Estate and marketed for lease by the professional leasing team of James Bayless and Ashley Brooks of CBRE.
“We’re proud to have seen Phase One of this project become reality,” said CBRE’s Ashley Brooks. “This recent activity underscores the strength of Phoenix’s office market in the second quarter of 2018, and we look forward to welcoming new companies to Norterra West Two as Phoenix’s demand for high-quality office space continues to accelerate.”
The 147,638-square-foot building is a prominent and highly visible structure along the Black Canyon Freeway and possesses 100% covered parking for 877 cars (6/1000 SF). A twin three-story building is planned by USAA Real Estate / Metro Commercial Properties development team. Construction drawings for the forthcoming Norterra West Phase Two office building are currently being assembled by Tempe architectural firm Davis, with construction permits projected in the fall of 2018. James Bayless and Ashley Brooks at CBRE have been engaged by the owner/developer to market the second phase office building to pre-lease and build-to-suit office clients.
“The design features of Norterra West Two will closely replicate the first phase building,” stated Patrick Althoff, CEO of Metro Commercial Properties. “The large efficient floor plates, abundant 6 to 8 per thousand square foot parking ratio, the planned conference/fitness amenity center, and the strong retail and residential amenity base within Norterra will provide us the attributes we need to compete for and attract strong corporate users to the building.”
In addition to the proposed second phase of office at Norterra West, additional phases of development within Norterra are being considered. Union Park at Norterra is planned for 1,100 single family homes, 1,100 multi-family units, along with hotel, office, and specialty retail and restaurants. The first phase, totaling 309 single family homes by homebuilders Ashton Woods, Cachet Homes and David Weekley Homes, will start late summer / early fall 2018.