Two-Building Class A Office Campus in Camelback Corridor

PHOENIX, Arizona – CBRE Group, Inc. has completed the sale of Camelback Commons, a ±322,406-square-foot office campus located at 4722 and 4742 N. 24th St. in Phoenix. The two building, Class A office property commanded a sale price of $66.4 million.

Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, a joint venture between California‐based McCarthy Cook & Co. and New York‐based Morgan Stanley Real Estate Investing. The buyer is Los Angeles-based Regent Properties.

“Camelback Commons features an exceptional location in the heart of the Camelback Corridor, one of the Valley’s most prestigious office markets,” said CBRE’s Gabel. “Regent Properties is acquiring a trophy asset in a sought-after market with a strong, credible and diverse tenant roster with significant upside.”

Additionally, Bruce Francis, Dana Summers, Shaun Moothart, Bob Ybarra and Doug Birrell with CBRE Capital Market’s Debt & Structured Finance team secured the financing for the buyer.

“Due to the excellent sponsorship and asset profile, we received strong quotes from a broad group of lenders, including banks, debt funds and life insurance companies”, said CBRE’s Francis. “We were pleased to deliver the most competitive financing, which offered the best combination of rate, prepayment flexibility and proceeds to meet the sponsorship objectives.”

Constructed in 1986, Camelback Commons underwent a $4.5 million renovation in 2015. Upgrades to on-site amenities include a state-of-the-art conference center and tenant lounge, redesigned café with indoor and outdoor seating, fitness center with locker rooms and showers, bike sharing and short-term covered parking. Tenants also have access to improved open-air terraces and balconies along with “The Deck,” a contemporary outdoor gathering area that offers games and shaded, lounge-style seating. The site is surrounded by numerous walkable amenities, restaurants and retail destinations including nearby Biltmore Fashion Park. Access to State Route 51and I-10 is minutes away from the property.

CBRE has been engaged for property management services at Camelback Commons.

CBRE completes sale to private equity real estate fund

Phoenix, AZ – Velocis LLC in Dallas, TX (Fred Hamm, managing principal) has bolstered its real estate portfolio in the Valley by paying $39 million ($189.87 per foot) to acquire a 205,405-square-foot office-retail project in Phoenix. The three-building complex, called Park One, is located at 2111, 2121 and 2141 E. Highland Avenue in Phoenix.

Velocis, a private equity real estate fund, has purchased Park One, a three-building, multi-tenant, Class-A office development totaling 205,000-square-feet in the Camelback Corridor in metropolitan Phoenix.

A team of brokers including Barry Gabel, Chris Marchildon, and Kevin Shannon represented the seller, a joint venture between California-based McCarthy Cook & Co. and New York-based Morgan Stanley Real Estate. CBRE’s Capital Markets’ Debt and Structured Finance team, including Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart, worked on behalf of Velocis and the lender, providing debt financing for the purchase.

“Park One is ideally located in the Camelback Corridor, which is one of the most desirable office markets in metropolitan Phoenix,” said Mr. Gabel who is with CBRE’s Phoenix office. “Park One offered Velocis the opportunity to buy a newly renovated, TOBY award-winning, income-producing property, located in the heart of the Camelback Corridor at a substantial discount to replacement cost.”

According to CBRE Research, the Camelback Corridor has the highest average rental rates and property values in Phoenix. CBRE Econometric Advisors ranks the Camelback Corridor as a top-10 office submarket for rent growth, forecasting 6.3 percent average annual rent growth over the next three years.

“This is Velocis’ second office building acquisition in the Phoenix/Scottsdale market working with Barry Gabel and his team,” said Paul Smith, principal, Velocis. “We like the office market fundamentals and the strong job growth currently taking place in the Valley.”

Jim Yoder, principal, Velocis adds, “An institutional-quality asset like Park One is a great fit for our acquisition strategy. We look forward to unlocking hidden value with additional capital improvement projects and an enhanced customer and tenant experience.”

Park One is located at 2111, 2121 and 2141 E. Highland Avenue in Phoenix. The property was 84 percent leased at time of sale and features a diverse tenant roster that includes various law firms, financial advisors, engineers and other professional services firms.

Situated within a park-like campus environment, Park One features a private two-acre lake, landscaped paths and bridges and abundant outdoor seating areas. The property also includes a freestanding restaurant/sports bar, a café and an on-site fitness center that was recently renovated in 2014 with new equipment and both above grade and below grade covered parking.

Park One is Velocis’ second acquisition in the Phoenix market. In 2015, the Fund purchased Camelback Square, a three-story Class-A office project in the heart of Old Town Scottsdale.

Velocis, has been active in real estate investment since 2011, purchasing 21 assets located in markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. Velocis is led by a team of five seasoned principals who are directly responsible for the acquisition, asset management and disposition of assets.

Phoenix, AZ – CBRE has negotiated the sale of the Apollo Corporate Headquarters campus, a Class A, 599,664-square-foot, three-building, single-tenant office campus located at 4025, 4035, and 4045 South Riverpoint Parkway in Phoenix for $183 million. In addition to negotiating the sale, CBRE also arranged acquisition financing on behalf of the buyer.

CBRE’s Barry Gabel and Chris Marchildon in the Phoenix office, along with Kevin Shannon, Ken White, and Michael Moore in the firm’s South Bay office negotiated the sale. The team represented the seller, American Realty Capital Properties, Inc. (ARCP). The buyer was Epic Apollo, LLC, (Steven Elghanayan, Michael Elghanayan, principals) coordinated by Crown Properties, Inc. (Davar Rad, principal) both New York-based.

CBRE’s Capital Markets’ Debt and Structured Finance team, including Bruce Francis, Dana Summers, Bob Ybarra, and Shaun Moothart, worked on behalf of the buyer and the lender, Goldman Sachs.

“The Metropolitan Phoenix investment market continues to post significant benchmarks towards full recovery,” said CBRE’s Gabel. “This property last traded at $283 per square foot in 2011, and this most recent sale marks a 7.6 percent increase at $305 per square foot. Investors recognize momentum in the market and we expect this is just the beginning of an active and healthy 2015.”

“The sale of this property is part of our ongoing active portfolio management strategy,” explained Thomas W. Roberts, Executive Vice President of Real Estate at ARCP. During the third quarter of 2014 we began evaluating opportunities to bring this high-quality asset to market and maximize its value, capitalizing on the increasing strength of the Phoenix commercial real estate market.”

“This is another example of the increasing investment of foreign capital in all US markets. This property provides our off shore investor the stability of a long-term, 16 year remaining, net lease with one of the largest educational companies in the world,” said Shannon. “In addition, the annual rent increases of two percent provides the investor predictable annual revenue growth over the life of the lease.”

“This transaction served as an ideal opportunity to bring together world-class sponsorship and Goldman Sachs as the lender,” said Francis. “The borrower and lender worked closely and diligently on the financing of this office campus, which serves as the World Headquarters for the Apollo Group. From loan application to loan closing, it took just over 30 days to complete the transaction.”

The Apollo Group Headquarters campus is 100 percent leased to Apollo Group, Inc., one of the nations’ largest providers of higher education programs for working adults. It is comprised of three office buildings, one 10-story building at 267,962 square feet and two six-story buildings each comprised of 165,851-square-feet, and two multi-level parking garage structures. The campus is home to approximately 2,850 executives and employees of Apollo Group, Inc.

This state-of-the-art, institutional-quality campus is centrally located within the Phoenix metropolitan area. It is adjacent to Interstate 10, providing access to Highway 60, Interstate 17, and Loop 202 and 101 freeways. The campus is within a ten-minute drive from both downtown Phoenix and downtown Tempe, a five-minute drive to Sky Harbor International Airport and benefits from proximity to numerous amenities, including restaurants, hotels and a variety of retailers.

Barry Gabel and Chris Marchildon can be reached in the Phoenix office at 602.735.5555, along with Kevin Shannon, Ken White, Michael Moore, Bruce Francis, and Dana Summers. Bob Ybarra is at 702.369.4859 and Shaun Moothart can be contacted at 949.509.2111.