Brings landmark Camelback Corridor project to 96 percent leased

PHOENIX, AZ– Phoenix Children’s Hospital has committed to a 27,265-square-foot office lease at Biltmore Commerce Center, a Class A Camelback Corridor office building that was purchased just months ago by office investment and management expert Lincoln Property Company (LPC) and a fund managed by Oaktree Capital Management, L.P. (Oaktree). The company will move into Biltmore Commerce Center next month, bringing the project to 96 percent occupied.

The is the first lease new deal signed by the building ownership, which purchased Biltmore Commerce Center as part of more than $165 million in Phoenix-area investment activity in the early months of 2015.

“PCH was looking for a location close to its main hospital that could provide office-specific space for its growing administrative and executive functions. With its location and efficiencies, Biltmore Commerce Center fit that bill precisely,” said Lincoln Property Company’s Vice President Amr Ceran.“We are very pleased to welcome PCH to our tenant mix, and look forward to putting this project’s full advantages to work for them.”

Under the lease, Phoenix Children’s Hospital will ultimately occupy 27,265 square feet of space – a full wing on the project’s second floor. They will use the space for executive offices and for administrative functions including human resources and accounting.

Scott Maxwell of CRESA represented Phoenix Children’s Hospital in the lease negotiations. Lee & Associates’ Bill Blake, Craig Coppola, Andrew Cheney and Colton Trauter represented the landlord.

LPC has also completed a number of lease renewals at the project since its purchase, including Extreme Consulting and Strategy Wealth Management.

Located at 3200 E. Camelback Rd., on the northeast corner of Camelback Road and 32 Street in Phoenix’s prominent Camelback Corridor, Biltmore Commerce Center is known for its Alucobond® metal panel exterior and highly visible, street-facing water feature. The project totals three stories and 259,000 square feet, with efficient floorplates and an 11,000-square-foot, newly remodeled three-story atrium running through the interior first floor. It also includes ground-level parking and subterranean parking that provides quick and direct access to all tenant floors via two separate elevator banks.

Additional project renovations and features include remodeled corridors and lobbies, upgraded landscaping and the new street-facing water feature. The property has earned an average 94-point Energy Star rating over the past six years. In 2012, it was named The Outstanding Building of the Year (TOBY) by the Building Owners and Managers Association (BOMA).

The project sits across the street from two retail projects, with numerous dining, shopping and business services options.

“This is a true landmark Phoenix property, with the full support of LPC’s more than 50 years of asset and project management expertise behind it,” said LPC Director of Management Services Alisa Timm, who directs the project’s property management strategy. “Amenities like the central atrium and high-tech touches give it the power to remain at the top of the market.”

With the Phoenix Children’s Hospital lease, Biltmore Commerce Center is now almost 96 percent leased to a broad group of tenants including HDR Engineering, Coamerica, Lee & Associates, United Way, Greystar, North American Title Company, DeRito Partners and Miller Russell & Associates.

LPC is now under construction on a first-floor, 4,600 speculative office suite at the project, with estimated completion in late July. This, along with one additional 6,241-square-foot suite on the third floor, makes up the last available space at Biltmore Commerce Center. For additional leasing information or to discuss investment opportunities, please contact David Krumwiede or Amr Ceran at (602) 912-8888.

PHOENIX, AZ– Office investment and management expert Lincoln Property Company (LPC) and funds managed by Oaktree Capital Management, L.P. (Oaktree) have completed the $58 million purchase of Biltmore Commerce Center, a Class A, institutional-quality office building located in the heart of Phoenix’s coveted Camelback Corridor.

The acquisition represents LPC’s second transaction in a partnership with Oaktree that has generated $102 million in metro Phoenix deal activity in a 60-day timeframe. These deals include the $58 million Biltmore Commerce Center acquisition and the $42.3 million, mid-February disposition of Camelback Square, a 174,917-square-foot, Class A office asset in Old Town Scottsdale. It also increases LPC’s Phoenix investment activity to more than $165 million in the last 60 days.

Located at 3200 E. Camelback Rd., on the northeast corner of Camelback Road and 32^nd Street in Phoenix’s prominent Camelback Corridor, Biltmore Commerce Center is known for its copper metallic exterior and highly visible, street-facing water feature. The project totals three stories and 259,000 square feet, with efficient floorplates, ample above- and below-ground parking, and an 11,000-square-foot, newly remodeled three-story atrium running through the interior first floor.

The property is currently 93 percent leased to a diversified group of established tenants including HDR Engineering, Lee & Associates, United Way, Greystar, North American Title Company and Miller Russell & Associates.

“Phoenix has the lifestyle, the labor and the commercial real estate to generate upside value, drive demand and respond to tenant needs at almost any point of the real estate cycle,” said Lincoln Property Company’s Executive Vice President David Krumwiede, who directed the Biltmore Commerce Center investment purchase. “It’s an exciting dynamic to work in, particularly when you have a team that can see potential at any given point in the cycle, and use their investment, development and management skills to build on that potential. It leads to a lot of opportunity in many venues, including this latest, great portfolio addition.”

“One of the many strengths of Biltmore Commerce Center is the subterranean parking, which provides quick and direct access to all tenant floors via two separate elevator banks,” said Mark Jacobs, Managing Director with Oaktree Capital Management. “Tenants can go from their car to their office in less than 60 seconds, compared to five or 10 minutes for most buildings within the submarket. In addition, the location offers great visibility while providing quick and easy access without the high traffic congestion that other projects often experience.”

Additional project renovations and features include remodeled corridors and lobbies, upgraded landscaping and the new street-facing water feature. The property has earned an average 94-point Energy Star rating over the past six years. In 2012, it was named The Outstanding Building of the Year (TOBY) by the Building Owners and Managers Association (BOMA).

“The atrium has always been a unique element of the project, but has become even more valuable following a recent renovation that transformed it into a modern, collaborative space,” said Lincoln Property Company’s Vice President Amr Ceran. “The new atrium has stylish seating areas, a café and community tables, docking stations and water features. Its inviting character provides the opportunity for clients and team members to meet, for tenants to hold events, and an area where employees can relax. It’s one of the nicest spaces of its kind in Phoenix.”

Biltmore Commerce Center sits across the street from two retail projects with numerous dining, shopping and banking options, including Central Bistro, Wells Fargo, Bank of America, Mexx 32, Tarbell’s, Tommy V’s Osteria and Pizzeria, Tomaso’s and Hava Java Café. It is within one mile of the upscale, 600,000-square-foot Biltmore Fashion Park and the Arizona Biltmore Hotel and golf resort.

“This makes for a commanding asset that, with smart management, will only continue to grow in value and prestige – both for the ownership team and the tenants who lease here,” said Krumwiede.

Cushman & Wakefield’s Chris Toci, Chad Littell, Jerry Noble, Pat Devine and Greg Mayer represented the property seller, a venture between DPC Development Company and Bridge Investment Group. LPC Director of Management Services Alisa Timm will direct the project’s property management strategy.

According to Cushman & Wakefield data, the Camelback Corridor submarket posted 358,368-square-feet of leasing activity in 2014, with projects in the area experiencing record high lease rates and, in the case of the Camelback Corridor, sustaining double-digit rent growth.

For leasing information on Biltmore Commerce Center or to discuss additional investment opportunities, please contact David Krumwiede or Amr Ceran at (602) 912-8888.

PHOENIX, AZ — Cushman & Wakefield of Arizona has been selected to handle leasing of the prestigious Biltmore Commerce Center, a Class A office complex at 3200 East Camelback Road in Phoenix.

The property, which was recently purchased by DPC Development Company of Denver, will undergo a significant modernization and re-positioning in the Camelback Corridor.

The mid-rise office building, which contains approximately 258,348 square-feet of space, was constructed in the mid-1980s. The mid-rise building is situated on approximately 7.53 acres of land that includes a six-level parking structure. Anchor tenants at the property include HDR, North American Title and Accenture.

DPC Development Company is a value-add investor that is known for presenting their buildings in a first class manner and for attracting some of the most prestigious tenants. The company has owned other properties in Arizona and will soon embark on upgrading this asset.

Biltmore Commerce Center’s interior is designed around a sizable atrium space with a large water feature. “The owner has hired Oz Architecture, a very dynamic and creative firm based in Denver, to create a tenant-focused interior that addresses the needs and desires of today’s office users,” says Jerry Noble, senior director with Cushman & Wakefield. “The new ground floor will feature abundant, modern seating areas and Wifi access for meetings and individual work. A new, re-designed water feature and interior landscaping will be included in the design. The owner also is considering the addition of a coffee or restaurant user on the ground floor. This owner is committed to more than a beautification effort and is dedicated to creating a business environment that meets the current desires of tenants and their employees.”

DPC Development Company also has undertaken a re-landscaping effort on the exterior at the corner of 32nd Street and Camelback Road. Simpler plantings and extensive lighting are being installed to improve the curb appeal of the building during both day and night.

“We were proud to acquire this signature asset on the Camelback Corridor,” said Justin Lutgen of DPC Development. “We have been looking for more opportunities in the Arizona marketplace and this asset provides great upside potential. Biltmore Commerce Center’s phenomenal location and 70 percent occupancy offers us the ability to improve the value of the property and lease the remaining space as the market improves.” Biltmore Commerce Center is one of the few buildings in the Camelback Corridor that offers 45,000+ square feet of contiguous space for a large user.

Jerry Noble, Pat Devine and Greg Mayer of Cushman & Wakefield will serve as exclusive leasing agents for Biltmore Commerce Center.

The Cushman & Wakefield team of Noble, Devine and Mayer can be reached at (602) 253-7900.