Phoenix, Arizona – CBRE Group, Inc., has completed the sale of a 39,950-square-foot office space located at 15601 North 28^th Ave. in Phoenix. The property, which is located in the Arizona Business Park in the I-17 Corridor, commanded a sale price of $4.26 million ($107 PSF).

Ashley Brooks of CBRE’s Phoenix office represented the seller, Arizona-based Paramount Partners LLC. Beth Jo Zeitzer and Justin Cirell with R.O.I. Properties represented the buyer, Arizona-based Research Building, LLC.

“This property presented a unique opportunity to the user as Arizona Business Park occupancy continues to increase with blue-chip office tenants and medical headquarters for Arizona Endocrinology Center and Retinal Consultants of Arizona,” said Brooks.

Research Building, LLC is headed up by Dr. Joseph Gimbel, who will oversee multiple activities during the new acquisition. One task includes overseeing the relocation of Arizona Research Center, an award-winning clinical trial facility that has collaborated on close to 1,000 trials since its inception in 1997. The new property will enable the facility to expand its reach to Valley residents. He will also oversee the relocation of Phoenix Orthopaedic Surgeons, which will move its headquarters to the property, which boasts two certified operating rooms.

Built in 1996, the two-story building is ideally situated along the I-17 in proximity to an abundance of master-planned communities, restaurants and hotels. It is easily accessible via major transportation routes, including Loop 101 to the north, connecting the property to many parts of the Valley.

Phoenix, AZ – CBRE has completed the sale of a commercial property located in the Arizona Business Park at 15401 N. 29^th Avenue in Phoenix. The property, a former Bally Total Fitness facility redeveloped for office use, commanded a sale price of more than $3.9 million ($106 PSF).

Ashley Brooks and Jim Bayless with CBRE’s Phoenix office negotiated the transaction. The seller was James Greaves with G2 Capital of Scottsdale. The buyer was Phoenix-based Retinal Consultants of Arizona, which is the largest ophthalmology practice in Arizona with a focus on the diagnosis and management of the retina and vitreous. Retinal Consultants will utilize the property to see patients. They will also run company administration operations from this location.

“This was an exciting project with many nuances. We’re glad that Retinal Consultants of Arizona chose to buy the building and make it their premier location. They got an essentially new building at a great price,” said Greaves

“The Valley’s office market is facing a dearth of high quality, function space,” said CBRE’s Brooks. “Office users, especially those with larger footprints, know they need move on space quickly if and when it becomes available. This sale is a reflection of that reality. The market is going to see a lot more redevelopment this year to try and accommodate the demand for modern office space.”

Recognizing the opportunity to redevelop the distressed property for alternative uses, G2 Capital purchased the former Bally’s in early 2015 for just over $1 million. G2 Capital spent several months researching the market for this opportunity. Immediately after closing escrow, G2 Capital demolished all existing improvements, including the locker rooms and pool, and began to add glazing, landscaping, a new parking lot and new HVAC units.

Originally developed in 1988, the 36,678-square-foot property is situated at the northeast corner of 29^th Avenue and Greenway Road in the Arizona Business Park within the I-17 Freeway corridor of north Phoenix.

Phoenix, AZ – CBRE has completed the sale of the Farmers Insurance Building, a ±106,397-square-foot single-tenant office building located at 16001 N. 28^th Avenue in Phoenix. The property, which is located in the Arizona Business Park in the I-17 corridor, commanded a sale price of $16.85 million ($158 PSF).

Barry Gabel and Chris Marchildon, along with Ashley Brooks, Jim Bayless and Jenny Aust, of CBRE’s Phoenix office represented the seller, Newport Beach, Calif.-based Sabal Financial Group through an entity Granite Twenty Eighth Holdings, LLC. The buyer was Select Income REIT of Newton, Mass.

“This is a savvy buyer who fully understands the unique dynamics of the Arizona Business Park and the strength of the I-17 corridor,” said CBRE’s Gabel. “The tenant has been in the corridor for decades and has long been able to draw from a diverse and dynamic labor pool. This sustainable success has made Farmers Insurance an ideal tenant, and in turn, has made the property a smart investment.”

Located in the Arizona Business Park with frontage along Interstate-17, the Farmers Insurance property benefits from its location among some of the top employers in the metro area. The park has proximity to a large and diverse labor pool – over 2.43 million people within a 40 minute commute – and abundant retail amenities.

The transaction follows shortly after CBRE sold the State Farm building at 444 N 44^th Street that we reported on April 22, 2105.

The property will be managed by Reit Management & Research LLC, Real Estate Services, which manages nearly 70-million-square-feet of commercial office, industrial and medical office space across the country.