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

Arrowhead Orchards Project to bring 22,700 Sq. Ft. of New Product to Market 

Phoenix, AZ – The Arrowhead Orchards medical office development is slated to see the first MOB spec project in the Valley since the recession. The property owner, Arrowhead Health Center, LLC, an entity affiliated with Legend Real Estate Management, Inc., will be developing more than 22,000-square-feet of new product in the coming months.

Los Angeles-based Legend is a privately held real estate investment and management firm with a diverse commercial real estate portfolio in California, Arizona and Nevada.    Other medical office properties in Arizona include Estrella Health Center in Phoenix, Baywood Health Center in Mesa and Casa Grande Professional Center in Casa Grande.

CBRE’s Katie Kelley and Vince Femiano will be responsible for the marketing and leasing of the new building.

Kelley and Femiano expect the project to be met with much interest from healthcare users in the market. They note current trends in healthcare as major drivers of the need for new development.

“There are a number of factors influencing current medical real estate trends,” said Femiano. “We’re currently seeing a significant lack of quality blocks of contiguous space over 5,000 square feet and as healthcare groups consolidate, the demand for functional larger blocks of space is increasing.”

Additionally, the building’s adjacency to the Abrazo Arrowhead Campus and unique leasing options will be a major plus for future users.

“The property is adjacent to the hospital with no ground lease restrictions; physicians and physician groups will not have to have privileges at the hospital to lease space at the new building,” said Kelley. “What’s more, there is the opportunity for an ambulatory surgery center.”

The CBRE brokers point out that the Abrazo Arrowhead Campus is strong, well respected and growing. They also say that due to partnerships expanding under the Accountable Care Network, they expect to see a number of new users to the market.

Arrowhead Orchards is located at 6320 W. Union Hills Drive in Glendale, Ariz., directly across from the Abrazo Arrowhead Campus, a 217-licensed bed hospital. The property is also within five miles of Banner Thunderbird Medical Center, a 561-licensed bed hospital. Presently, the development consists of approximately 103,216 square feet of class A medical office space, comprised of the two, two-story buildings. Current tenants in the complex include a complimentary mix of healthcare providers, including HonorHealth, TOCA, US Oncology, Center for Venous Disease, Pain Stop, Sonora Quest Lab, Arizona Center for Urology, and SimonMed Imaging, among others.

 

 

PHOENIX, AZ – Bob Mulhern, Senior Managing Director at Collier’s International, was honored with the Award of Excellence at the 2015 Best of NAIOP last week at the Arizona Biltmore.

NAIOP member since 1994, Mulhern served on the Arizona Board of Directors for 14 years, including stints as president and chairman in 1996. He is currently chair of the education committee. In 1996, he moved NAIOP to a strategy of big events, beginning with a golf tournament that year. It has since grown to be one of the most sought-after tickets on the calendar.  

NAIOP Arizona’s Award of Excellence, formerly the Lifetime Achievement Award, is awarded by the Arizona Chapter Board of Directors on an annual basis at the Best of NAIOP event.  The criteria for the recipient is an individual who has made a significant, positive impact on the office and industrial commercial real estate market in Arizona over a period of no less than 15 years, as well as their direct volunteer contribution to the chapter.

As NAIOP Arizona celebrated its 30^th year, it was a big night for repeat winners. Ryan Companies US took home its fourth straight Best of NAIOP award for Firm of the Year and third straight award for General Contractor of the Year. Butler Design Group was named Architect of the Year for the fourth straight time and CBRE (Brokerage Firm of the Year) won for the second straight time.

In the brokerage awards, repeat winners were Pat Williams, JLL, Tenant Rep Broker of the Year; Kate Morris and Vince Femiano, CBRE, Healthcare Brokers of the Year; and Chris Toci, Cushman & Wakefield, Investment Broker of the Year.

Phoenix-based ViaWest Group took home two honors: Owner/Developer of the Year, and Transaction of the Year, Biltmore Financial Center. Talk of the Town Award went to Marina Heights, Building 500.

The event was sponsored by NAIOP Arizona. More than 950 commercial real estate professionals attended.

The 2015 Best of NAIOP winners:

Owner/Developer of the Year: ViaWest Group

NAIOP Firm of the Year: Ryan Companies US, Inc.

Architect of the Year: Butler Design Group

Interior Architect of the Year: RSP Architects

General Contractor of the Year: Ryan Companies US, Inc.

Tenant Improvement Contractor of the Year: Ryan Companies US, Inc.

Office Broker of the Year: Todd Noel, Keith Lambeth & Ryan Timpani, Colliers International

Industrial Broker of the Year: Pat Feeney, Dan Calihan & Rusty Kennedy, CBRE

Retail Broker of the Year: Joe Doucett, NGKF

Investment Broker of the Year: Chris Toci, Cushman & Wakefield

Healthcare Broker of the Year: Kate Morris & Vince Femiano, CBRE

Tenant Representative Broker of the Year: Pat Williams, JLL

Emerging Broker of the Year: Cooper Fratt, CBRE

Rookie Broker of the Year: Michael Strittmatter, CBRE

Industrial Build-to-Suit of the Year: Shutterfly at Discovery Business Campus

Industrial Tenant Improvement of the Year: Stone Creek Furniture

Office Build-to-Suit of the Year: DriveTime Corporate Headquarters, Liberty Center at Rio Salado and Marina Heights, Building 500

Office Tenant Improvement of the Year (75K SF or Less): Mobile Mini Headquarter & Call Center

Office Tenant Improvement of the Year (75K SF or More): Marina Heights, Building 500

LEED Certified Project of the Year: Liberty Center at Rio Salado

Medical Office Project of the Year: Friendship House at Royal Oaks Memory Care

Mixed-Use Project of the Year: Aspen Place

Retail Adaptive/Re-Use Project of the Year: The Yard at the Farmer Arts District

Redevelopment Project of the Year: The Scheduling Institute

Spec Industrial Project of the Year: 10 West Logistics Center

Spec Office Project of the Year: Hayden Ferry Lakeside III

Transaction of the Year: Biltmore Financial Center

Award of Excellence: Bob Mulhern, Colliers International

Brokerage House of the Year: CBRE

Developing Leader of the Year: Ashley Hoffman, Layton Construction

Principal Member of the Year: Rick Butler, Butler Design Group

Associate Member of the Year: Eric Wolfe, Chicago Title Agency

Talk of the Town: Marina Heights, Building 500

Sign Sponsor of the Year: Trademark Visual, Inc.