PHOENIX, Arizona – A Tempe, Arizona address and quality tenancy were key to the $23 million ($202 PSF) sale of Warner Courtyards, completed this week by the Phoenix office of JLL. The seller was locally based building owner and manager Hannay Realty Advisors. The property buyer, Simone Charitable Foundation Inc., acquired a 95 percent interest in the office building. Hannay retained 5 percent ownership interest in the property.
“The Simone Foundation was very attracted to this building’s Tempe address and its roster of long-term credit and blue chip tenants that operate within very stable industries,” said JLL Senior Vice President Brian Ackerman, who brokered the deal with JLL Senior Vice President Dan Postal. “These advantages, along with the positive long-term performance of the Southeast Valley office market, are hard to replicate.”
According to JLL, the submarket is home to only 30.3 percent of the Valley’s office inventory, but has accounted for almost 55 percent of the total net absorption in metro Phoenix since 2010. “That same ratio holds true as recently as the past 12 months, with Tempe recording 54.4 percent – or more than 621,000-square-feet – of the Southeast Valley’s 1.1-million-square-feet of total office absorption,” said Ackerman.
Warner Courtyards is located at 301 W. Warner Road, at the southeast corner of Warner and Kyrene roads in the heart of Tempe. The office building totals 114,054-square-feet and features single-story construction with high ceilings, a floor-to-ceiling glass line and four interior courtyards. It is less than two miles from a full diamond interchange at Interstate 10, and approximately three miles from the U.S. 60 and the Loop 101 and Loop 202 freeways. It is surrounded by a highly educated workforce, popular residential communities, and is less than 15 minutes from Sky Harbor International Airport.
Notable tenants at Warner Courtyards include Cenlar FSB, Career Education Corp. and Global Lending Services. The building has been institutionally managed by Hannay Realty Advisors. Hannay will continue to manage the property under its new ownership.