TEMPE, AZ – CBRE has announced the sale of Papago Arroyo Office Complex, a three-building office complex in Tempe, Arizona. The 279,503-square-foot, two-story office buildings are located at 1255, 1275, and 1295 West Washington Street in the geographic heart of metropolitan Phoenix, and the highly desirable City of Tempe office market. The asset commanded a sale price of $40.85 million ($146 PSF).

Bob Young, Glenn Smigiel, Steve Brabant and Rick Abraham with CBRE’s Phoenix office, along with Andrew Cheney and Craig Coppola with Lee & Associates, represented the seller, Greenwood & McKenzie of Tustin, Calif., in the transaction. The buyer was undisclosed.

In addition to handling the investment sale, CBRE Vice Chairman Bruce Francis and Vice President Shaun Moothart, both with the CBRE Debt & Structured Finance team, arranged the ten-year loan on behalf of the borrower. The permanent financing included 5 years of interest-only.

Constructed in 1998 and 96 percent leased, Papago Arroyo is part of Papago Park Center, a 350-acre infill business park with a strong corporate tenant profile, including Wells Fargo, DHL, Union Bank, State Farm, and First Solar. The Tempe submarket has a 10.3 percent vacancy rate, less than half the overall office market vacancy rate in metropolitan Phoenix. This is indicative of the strong tenant preference for a location in Tempe.

“Tempe continues to perform at the top of the metropolitan Phoenix office market. Papago Arroyo offers tenants a centralized, highly desirable location with a strong amenity base and access to one of the strongest labor pools in the Valley,” said CBRE’s Young, lead broker in the investment sale.

“The outstanding central location of the property with its close proximity to Sky Harbor International Airport and the major valley freeways made this a very desirable financing opportunity for a wide variety of lenders and will ensure the property’s ability to draw tenants and stay well-occupied into the future,” says Francis.

Papago Arroyo is located near three major freeways, offering immediate access to the Loop 202 Freeway, the Hohokam Expressway (State Route 143) and Interstate 10. Sky Harbor Airport is within a five minute ride from Papago Arroyo or via a short walk to one of Phoenix’s Light Rail stations.

To learn more the CBRE brokers and finance team can be reached at 602.735.5555.

Phoenix, Ariz. – CBRE has negotiated the sale of the leasehold interest in Rimrock at ASU Research Park in Tempe, Ariz.  The two-building, ±83,764-square-foot office complex located at 2030 and 2050 East ASU Circle in Tempe, Ariz. commanded a sale price of $18.4 million ($220 PSF). The project was 93 percent leased at time of sale.

Bob Young, Steve Brabant, Glenn Smigiel and Rick Abraham with CBRE’s Phoenix office in conjuncture with Craig Coppola, Andrew Cheney, Bill Blake and Colton Trauter with Lee & Associates brokered the transaction on behalf of the seller, Rimrock Investors II of Phoenix. The buyer was Las Vegas, Nev.-based W Tempe, LLC.

“Rimrock is an excellent investment opportunity in Tempe and in one of most prominent business parks in the metro area,” said CBRE’s Glenn Smigiel. “ASU Research Park benefits from a unique partnership shared with Arizona State University which aids in fostering tenant growth by providing direct access to ground-breaking research, educational opportunities, faculty, and a young, educated technology minded workforce.”

Developed in 2007 by Rimrock Partners (Dean Riesen, Managing Partner and Ron Moore, Partner), the two building office complex is leased to three tenants, including Iridium Satellite, a global mobile satellite company; KINETX, an engineering, technology, software development and business consulting firm specializing in aerospace systems; and Comsys Information Technology Services, a wholly owned subsidiary of Manpower, Inc. Rimrock sits on ±10.10 acres and is comprised of two class A office buildings totaling ±25,457 square feet (2030 Building) and ±58,307 square feet (2050 Building) that also include flex and R&D space for the current tenants.

Rimrock is situated in ASU Research Park which is located at Elliot Road and the 101 Freeway in Tempe. The 320-acre business park is considered one of the most notable business addresses in the Phoenix metropolitan area and is home to numerous corporate headquarters and R&D facilities providing a corporate and technology hub for southeast Phoenix.

Young, Brabant, Smigiel and Abraham can be reached at CBRE in Phoenix, (602) 735-5555. Coppola, Cheney, Blake and Trauter at Lees & Associates are at (602) 956-7777.

Phoenix, AZ – CBRE has negotiated the sale of the Missouri Falls building located at 645 E. Missouri Ave. in Phoenix, Ariz. The 187,648-square-foot, class A office building commanded a sale price of $13.89 million in the transaction.

Bob Young, Glenn Smigiel, Steve Brabant and Rick Abraham with CBRE’s Phoenix office represented Greg Williams, the court appointed receiver for the seller, Midland Loan Services, which is a subsidiary of PNC Bank. The buyer is ICIC Commercial Investments – a local investment firm managed by Kelly House, Tom Blake and Andy Ligget.

“Missouri Falls is one of the few remaining Class A office buildings featuring large blocks of contiguous, available space in the Phoenix metro area,” said Brad Anderson – also with CBRE, who will handle the marketing and leasing for the building’s new ownership moving forward. “The property’s amenity-rich location coupled with aggressive lease rates should allow ownership to be very competitive in today’s market.”

Originally built in 1988, Missouri Falls is located at the southwest corner of Missouri Avenue and 7th Street. The four-story, Class A office property features wide open, larger floor plates surrounded by a reflecting pool at window line and an underground garage. The property is located close to retail amenities and close to major freeways and should be an attractive option for larger corporate users seeking space in a central, urban location.

Missouri Falls was built by the John Madden Company who owned the building until 1993 when US Bank foreclosed on the property. US Bank sold the building to The Trump Group (Aventura, FL.) the same year. Missouri Falls was eventually sold to a tenant-in-common group in December 2004. The tenant-in-common group owned the building until October 2012, when its largest tenant, CSK Auto, moved out of the building vacating 150,000 square feet. Debt payments on the building ceased and Midland Loan Services had the property placed into court ordered receivership. Greg Williams, the receiver, hired CBRE to dispose of the asset in April 2013.

Young, Smigiel, Brabant and Abraham can be reached at (602) 735-5555.