$51 Million Sale of Two Premier Class A Metro Phoenix Office Buildings

7272 E. Indian School Road, Scottsdale
7272 E. Indian School Road, Scottsdale

Phoenix, Ariz. – CBRE has negotiated the sale of two premier class A metro Phoenix office buildings for a total consideration of $51 million. The sale included the 175,186-square-foot building at 5090 N. 40th St. in Phoenix and the 152,081-square-foot Scottsdale Financial Center III located at 7272 E. Indian School Road in Scottsdale, for a combined 327,267 square foot investment. The buildings commanded sale prices of $26.35 million ($150 PSF) and $24.65 million ($162 PSF), respectively.

Jim Fijan and Will Mast with CBRE’s Phoenix office brokered the transaction between Newport, Calif. based CJK Investments, who sold the building to a joint venture between Lowe Enterprises in Los Angeles and J.P. Morgan Asset Management.

“This sale demonstrates the continuation of strong demand from institutional buyers seeking high-quality, value-add office properties in the Metropolitan Phoenix office market,” said CBRE’s Fijan.

5090 N 40th Street, Phoenix
5090 N 40th Street, Phoenix

Built in 1988, 5090 N. 40th St. sits in the heart of the Camelback Corridor, considered the premier business corridor in metro Phoenix. The building has great access to numerous retail and dining amenities including the Biltmore Fashion Park, North Italia, La Grande Orange, and Chelsea’s Kitchen. Phoenix’s Camelback Corridor includes numerous low- to mid-rise class A office buildings, retail centers and several world class hotels. 54 percent leased at time of sale, 5090’s major tenants include Bar-S Foods; Hatton Consulting, a federally registered full service asset management company; and Newland Communities, the largest private developer of planned residential and urban mixed-use communities in the United States, among others.

Also built in 1988 and most recently renovated in 2012, the brick-clad, five-story Scottsdale Financial Center III is located in downtown Scottsdale with proximity to luxury hotels, high-end shopping and first-class dining, executive housing and many other cultural and recreational attractions. Scottsdale Financial Center III was 90 percent leased at time of sale. Tenants include Regus, The Colony Group, Nestle Purina Petcare Company, Aderant, Cornerstone Advisorrs and Career Builder, among others.

Fijan should be reached at (602) 735-5583 while Mast can be contacted at (602) 735-5206.



Scottsdale’s Galleria Corporate Centre Sells for $68.6 Million

Scottsdale Galleria Corporate Centre (photo courtesy of CBRE)
Scottsdale Galleria Corporate Centre (photo courtesy of CBRE)

Galleria Corporate Centre, a Class-A, mixed-use office and retail project, located at 4301 and 4343 N. Scottsdale Rd. in Scottsdale sold for $68.6 million ($128 PSF) for the 537,110 square-foot complex.

Jim Fijan and Will Mast with CBRE’s Phoenix office represented J.E.M.B. Realty Corporation, a New York City-based company (Joseph Jerome, CEO) who sold the building to a joint venture between Stockdale Capital Partners (Steven Yari, managing partner) and funds managed by Oaktree Capital Management, L.P.(Howard Marks, president), both of Los Angeles, CA.

“Scottsdale Galleria has evolved into one of the most prominent mixed-use developments in the entire Phoenix-metro marketplace. The property fosters a unique atmosphere that you can feel as soon as you walk in the door, which stems from a dynamic, tech-centered tenant rent roll and the energy of an urban, downtown Scottsdale location,” said Fijan. “It’s always exciting working on projects of this caliber, but even more so when the parties involved are as innovative and future-centered as the project in which they are investing. The team effort from Stockdale Capital Partners and Oaktree Capital Management was really heartening to see and they were great to work with. Scottsdale Galleria is in good hands.”

“Given our history and presence in Scottsdale for over 20 years we are excited about further investing into the community at such a compelling time in the market. Our partnership with Oaktree makes us equally excited and we look forward to making this investment opportunity a success for everyone involved,” said Steven Yari, Managing Partner of Stockdale Capital Partners.

Galleria Corporate Centre was almost 90% leased at time of sale and is home to large national tenants like McKesson Corporation, Yelp, SAP, Sagicor, Scottsdale Culinary Institute and CA Technologies. Galleria’s strong leasing history is the result of its strategic location just south of the intersection of Camelback Road and Scottsdale Road, the most high-profile intersection in Scottsdale. The property is known throughout the Valley as a premier technology hub in Scottsdale reflecting the vibrancy and global direction of cutting edge technologies.

Built in 1991, Galleria Corporate Centre was originally developed and operated as a regional retail mall. The property was purchased by JEMB for $29.5 million and renovated in 2001 when it was converted into two separate designated buildings. 4301 N. Scottsdale is reserved for both office and retail use, while 4343 N. Scottsdale is reserved for office-only use. The property is also equipped with an adjacent ten-story parking garage and two levels of underground parking below 4343 N. Scottsdale.

Fijan and Mast at CBRE can be reached at (602) 735-5555. Jerome with JEMB should be contacted at (212) 699-4444. Yari at Stockdale Capital is at (310) 475-5819, to contact for more information.

Elliot Corporate Center Tempe Sells for $23.5 Million

Elliot Corporate Center - Photo courtesy of CBRE
Elliot Corporate Center – Photo courtesy of CBRE

The Elliot Corporate Center sold for $23.5 million to a joint venture between Everest Holdings in Scottsdale, Ariz. and Walton Street Capital in Chicago, Ill. The 223,392-square-foot office building located at 875 W. Elliot Road in Tempe, AZ sold for $105.20 per square-foot.

Built in 1998, Elliot Corporate Center benefits from immediate access to I-10 at Elliot Road as well as access to a densely-populated, large and well educated workforce in south Tempe and the extended southeast Valley.

Anchored by The Apollo Group’s (NASDAQ: APOL), The University of Phoenix, which occupies 162,069-square-feet, the two-story Elliot Corporate Center was 87% occupied at time of sale. The project also houses Lamson Business College in 32,400 square feet. The remaining vacant space totals 29,923 square feet and is available for lease by CRE.

Jim Fijan and Will Mast with CBRE’s Phoenix office represented the seller, tenants-in-common owners through Costa Mesa, California-based Thompson National Properties, LLC.

“This transaction is another example of the continued demand for office investment properties in the southeast Valley,” said Fijan. “Savvy investors recognize the continued strengthening of the market and well-located, well-taken-care of assets, like Elliot Corporate Center, are going to be well received.”

Fijan and Mast can be reached for more information at (602) 735-5206.