Popular “Live Work Play” Lifestyle of Midtown Attracts Buyers

Phoenix, Arizona – A portion of the office building at 3033 N. Central Ave. and its adjacent parking garage has been sold to a Canadian investor as its first Midtown Phoenix acquisition.  The buyer was attracted to the property because of its proximity within the increasingly popular “Live Work Play” Central Phoenix corridor.

“This complex transaction involved the sale of a portion of a nine-story mid-rise tower on Central Avenue,” says Mindy Korth, executive vice president with Colliers International in Greater Phoenix.  “Years ago, the tower had been converted to office condos and a real estate cycle downturn halted the unit sales to owner/occupants.  This left the tower with a portion of its square footage still landlord-controlled for multi-tenant leasing.  That status provided a unique opportunity for the buyer to gain a significant position on Central Avenue with a cost-effective investment.  The transaction presented a high level of complexity because the asset is involved in a condominium regime, owners’ association agreements and sharing of infrastructure services with the adjacent high-rise building.”

Korth, Charles Miscio and Kirk Kuller of Colliers International in Greater Phoenix represented the seller in the transaction.  Jim Bayless, Kate Morris and Vince Femiano of CBRE represented the buyer.

Phoenix Central Park Medical LP purchased the property from an entity represented by The Krausz Companies, a San Francisco based real estate company.

The post-modern design building was originally built in 1960 as a part of the class A Prudential Plaza that also includes a 25-story high-rise. It was extensively remodeled in 2005, when the condominium regime was established.  Located on 2.68 acres of land directly across from Park Central Mall it is in the heart of Midtown.

The sale included 80,230-square-feet of multi-tenant office space, which was 30 percent leased at the time of the sale.  The overall building area totals approximately 134,164-square-feet.  The Buyer came to the transaction with a sizable prospective tenant that is poised to lease approximately 38,000-square-feet of the tower’s vacant space.

“This asset offered tremendous upside at a fraction of replacement cost,” says Korth.  “Central Phoenix is attracting a wide range of employers and new residents and has become a 24/7 community. The Midtown submarket is poised for dynamic recovery and the buyer will benefit from the timing of their purchase.”

The Krausz Companies specialize in the acquisition, development and management of high quality, well-located retail, office, industrial and mixed-use properties throughout the United States.  www.krauszcompanies.com

Class A Office Complex to Provide Modern Work Environment

PHOENIX, Ariz. – The Muller Company, in a joint venture with investment firm Harbert Management Corporation, announced that the $20 million redevelopment of Sky Harbor Towers office complex is nearing completion of its first phase. The 13.6-acre, two-building office campus located at the intersection of Interstate 10 and State Route 143 is anticipated for move-in this spring.

The redevelopment of 4605 and 4615 E. Elwood St. will deliver 215,000-square-feet of state-of-the-art, amenity-rich office space to the Sky Harbor submarket of Greater Phoenix. The property features renovated lobbies, ample parking and a new pedestrian-friendly courtyard with shaded outdoor meeting areas situated around a central fountain. The second phase will modernize the fitness center, and the on-site café for casual inside/outside dining.

During 2015, a portion of the original three-building Sky Harbor Towers property was acquired by the Arizona Department of Transportation (ADOT) for its freeway widening project. The Muller Company positioned the campus for future success by demolishing the smallest of the property’s office buildings and expanding parking capacity to an abundant 6/1,000-square-foot ratio.

“Our goal with the remaining four- and seven-story buildings was to create an engaging campus environment that offers the appointments of a Class A mid-rise office complex and caters to tenants in the new economy,” says Stephen J. Muller, principal with The Muller Company. “This project is surrounded by low-rise ‘call center’ style properties. Sky Harbor Towers will stand out in the area landscape as offering a more appealing workstyle environment with logically-sized work areas, plentiful natural light and an active courtyard with outdoor work areas for an employee-friendly campus feel.”

Sky Harbor Towers’ mid-rise buildings provide expansive window lines and balconies. The buildings’ floors offer scalable flexibility that can accommodate any size of operation. “The redevelopment project has been meticulously designed, inside and out, to cater to 21^st-century companies with a young, dynamic workforce,” adds Muller.

The Muller Company selected Colliers International in Greater Phoenix to market Sky Harbor Towers. Colliers Executive Vice President Charles Miscio and Vice President Ryan Timpani are the buildings’ leasing agents.

“Sky Harbor Towers occupies a coveted location at the critical intersection of Interstate 10 and State Route 143, adjacent to Sky Harbor International Airport,” says Miscio. “More than 300,000 vehicles pass by this property each day, which offers prospective tenants impressive visibility with many signage opportunities. The campus is located in the exact heart of the city’s freeway system to attract labor from throughout Greater Phoenix.”

The Muller Company has acquired and operated over 30 million-square-feet of office, industrial and retail space in Arizona and California since its inception in 1979. This marks the second joint venture between The Muller Company and Harbert Management Corporation. The two companies also own the Diablo Technology Park in Tempe, Ariz.

For more information about Sky Harbor Office Towers, see www.skyharbortowers.com.