CBRE Brokers $100 Million Sale of 24th At Camelback

24th at Camelback, Phoenix, AZ

PHOENIX, Arizona CBRE has arranged the $100 million sale of 24th at Camelback, a 302,209-square-foot Class A trophy office tower in metro Phoenix’s Camelback Corridor. This high-profile transaction represents the largest office sale in metro Phoenix so far in 2018, both by dollar volume and price per square foot. At the time of sale, the property was 94 percent leased to a prominent tenant roster, that includes Greenberg Traurig, AAA, RSM, Cisco Systems, USI and Regus.

Barry Gabel, Will Mast and Chris Marchildon with CBRE Capital Markets, Institutional Properties in Phoenix represented the seller, an affiliate of Houston based Hines in the transaction. Jim Fijan, with Fijan Advisors, acted as an advisor to the Seller. New York Life Real Estate Investors acquired the property. Hines, who developed the property in 2000 and has managed the asset since it was delivered, will continue to manage the property under its new ownership.

“This sale is a testament to the strength of the Phoenix market and its position as a prime office investment market,” said CBRE’s Gabel. “There is a long runway for growth here in Phoenix for investors.”

24th at Camelback features sleek, contemporary architecture and has earned a LEED Gold Certification and Energy Star label. Additional features include an eight-story detached parking structure with two levels below grade and six levels above grade, providing an overall 3.7/1,000 parking ratio.

“24th at Camelback presented a unique opportunity for investors to purchase a class A, trophy asset of significant size in one of the Valley’s most highly coveted office submarkets,” said CBRE’s Mast.

Located at the premier intersection within the Camelback Corridor, 24th at Camelback features an exceptional on-site amenity base including Scramble – a Breakfast & Lunch Joint, which just recently opened in Spring 2018. Biltmore Fashion Park, the world-renowned, luxury shopping center located across 24th Street, offers over 60 high-end restaurants and world-class retail options including Arizona’s only Saks Fifth Avenue. Other nearby amenities include the Shops at Town & Country and Camelback Colonnade (offering an additional ±100 walkable restaurant and shopping options), the iconic Arizona Biltmore Resort (featuring 740 luxury rooms and suites, 8 swimming pools, a full-service spa, fitness center and five upscale dining options), the 263-room Camby Hotel (offering luxury accommodations and award-winning dining) and a new 160-room AC Marriott (expected to be delivered in late 2018).




Equus and iStar Complete $53 Million Office Complex in Scottsdale Acquisition

McDowell Mountain Business Park, Scottsdale

Los Angeles and Phoenix, Ariz. –Equus Capital Partners, Ltd. (“Equus”), one of the nation’s leading private equity real estate fund managers and iStar Inc. (“iStar”), announced today the formation of a joint venture to complete the $53,150,000 acquisition of McDowell Mountain Business Park in Scottsdale, AZ.

McDowell Mountain Business Park is a premier Class A office complex comprised of two identical three-story office buildings totaling 255,573± rentable square feet, located at 16425 and 16552 N. Pima Road, Scottsdale, Arizona.  Mesa West Capital has funded $42.6 million in first mortgage debt for the acquisition of the project.  The venture acquired the REO property from RAIT Financial Trust

McDowell Mountain Business Park was built in 2006 and 2007.  The property was 74% leased at acquisition to a diverse group of tenants. This upscale property is situated in a prime central location on the Loop 101 just north of Frank Lloyd Wright Blvd, providing easy access, excellent visibility and exposure.  Each L-shaped building offers expansive common areas with upscale finishes and floor plates that allows for maximum flexibility in layout and design.  In addition to its mountain views, the amenity-rich office complex is just minutes from a variety of nearby resorts, hotels and golf courses. A wide range of restaurants and retail stores are also nearby, and the buildings are only three miles from the Scottsdale Municipal Airport.

“We are pleased to expand our relationship with iStar and look forward to implementing our business plan on another well-located and high-quality project,” said Jonathan Praw, who oversaw the transaction. Praw, a Senior Vice President and Head of West Coast Operations for Equus, is based in the firm’s Los Angeles office.

This is the second joint venture for Equus and iStar in the Scottsdale market. The venture also owns Raintree Corporate Center, which is currently 95% leased, up from 51% at the time of acquisition in September 2015.  Raintree Corporate Center is a mile south of McDowell Mountain Business Park.

“We are excited to partner once again with a highly respected group like Equus. This opportunistic acquisition positions us to capitalize on the success we’ve had with our existing Raintree asset, with an attractive investment alongside a best-in-class owner,” said David Sotolov, Executive Vice President and Head of West Coast Investments, who oversaw the transaction for iStar.

“Equus and iStar are strong sponsors with a demonstrated track-record in the Scottsdale submarket,” added Jason Bressler Mesa West Vice President who originated the financing.
iStar has invested in Class A office, retail, industrial and residential projects in the greater Phoenix market for more than two decades.  This joint venture was made on behalf of Equus Investment Partnership X, L.P., a discretionary fund managed by Equus. Affiliates of Equus also own Scottsdale Gateway I, a 106,931-square-foot office building, and 92 Mountain View, a 116,200-square-foot office building, in the Scottsdale area.

Bryan Taute, Jim Fijan and Will Mast with CBRE’s Phoenix office headed the negotiations on the transaction between Buyer and Seller. Bryan Taute has also been appointed to spearhead leasing and marketing activities for the property.  Mesa West Capital’s five-year floating rate interest only loan was arranged by Rocco Mandala with CBRE in the firm’s Phoenix office.


Camelback Corridor Office Building Sells for $42.6 Million

5090 North 40th Street, Phoenix, AZ
5090 North 40th Street, Phoenix, AZ

Phoenix, Arizona – CBRE has completed the sale of a 175,835-square-feet, class A office building in the Camelback Corridor area of Phoenix. Located at 5090 N. 40th Street, the building commanded a sale price of $42.6 million, or approximately $242 per square foot.

Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the transaction. The seller was a joint venture between Lowe Enterprises and J.P Morgan Asset Management of Los Angeles, Calif. The buyer was Vancouver, BC, Canada-based City Office REIT, Inc.

The seller originally purchased the property as part of a portfolio in December 2013. At the time, the property was approximately 50 percent leased. Over the past 3 years, the seller instituted a capital improvement plan, investing millions into the building, as well as an aggressive marketing and leasing program, bringing the property to just over 90 percent leased at time of sale.

“The Camelback Corridor has always been one of the strongest employment corridors in the Valley, and 5090’s tenancy reflects that,” said CBRE’s Fijan. “Currently, the property is home to major corporate employers, including Bar-S-Foods, Kudelski Group and Beyond Trust Software, among others.”

Fijan also points to the submarket’s overall health as a positive indicator for the Valley’s office market.

“The Camelback Corridor has enjoyed a resurgence in 2016.  As one of the top performing submarkets in all of metro Phoenix in terms of net absorption, the Corridor’s class A vacancy rate currently sits at 16.3 percent – a huge improvement from the 21.6 percent of a year ago.”

Located in the heart of the Camelback Corridor, 5090 N. 40th is strategically located, offering quick, easy access to Arizona Highway 51 and the Loop 202 Freeway. Sky Harbor International Airport is just 6.7 miles away, and Arizona State University is less than 10 miles away.

CBRE’s Jerry Roberts, Corey Hawley and Pat Boyle have been retained to market and lease the property.