PHOENIX, AZ (August 22, 2025) -- Arizona real estate investor David McHenry purchased the two-story Tempe office property at 8700 S. Price Road in Tempe for $7.26 million ($55 PSF), according to an August 20th announcement. The 132,000-square-foot building, formerly occupied by Arizona tech giant Avnet Inc., sits within the 2.2 million-square-foot ASU Research Park, a hub for technology and corporate tenants.
The property was sold by LNR Partners, the special servicer that assumed control after the building fell into default. Vacant since Avnet’s lease expired in 2024, the building is now being marketed to new users.
Cushman and Wakefield's Eric Wichterman, Chris Toci, and Mike Coover represented the seller of 8700 S. Price Road, while Jack Stein of Patriot Commercial Properties represented the buyer. CBRE's leasing advisory team of Charles Miscio and Luke Walker assisted with the transaction and have the leasing agreement with new owner.
“This facility has a lot of attributes that make it very attractive,” said Eric Wichterman of Cushman & Wakefield, who, along with colleagues Chris Toci and Mike Coover, represented the seller. “There are a good number of interested tenants right now, including big-name technology companies. ASU Research Park has become a mecca for semiconducting.”
A Market in Motion
The deal follows a string of high-profile office transactions across metro Phoenix. Southwest Value Partners recently closed a $296 million portfolio acquisition totaling 1.53 million square feet. Downtown, Kellwood Company LLC of California acquired the 256,682-square-foot Monroe Building for its new headquarters, while the former Freeport-McMoRan Inc. headquarters hit the market earlier this summer.
Investment Rationale
McHenry, who owns dozens of Arizona properties ranging from shopping centers to raw land, sees significant upside at 8700 S. Price Road. “The building is in very nice shape, with excellent access to Loop 101, plentiful covered parking, and a massive solar array,” said Jack Stein of Patriot Commercial Properties, who represented McHenry. The property also benefits from multiple electrical substations, assuring reliable power supply.
McHenry is open to leasing the property to either multiple tenants or a single user. Tenant improvement allowances are expected to be offered, with CBRE’s leasing team of Charles Miscio and Luke Walker continuing in their advisory role.
Ground Lease Structure
The land beneath the building is owned by the Arizona Board of Regents on behalf of Arizona State University, with a master ground lease in place through 2101. Current ground rent is roughly $390,000 annually, with resets scheduled in 2029, 2059, and 2089. Uses within ASU Research Park are restricted to technology, R&D, corporate headquarters, and certain supportive services; data centers are specifically prohibited.
The building’s sale reflects the steep decline in valuations. Once appraised at $22.6 million in 2013, the property’s value dropped to $11.3 million in February 2024 and $7.8 million by September 2024, slightly above the ultimate sale price. At $7.26 million, the deal pencils to $55 per square foot — far below replacement cost. The unpaid loan balance at the time of sale was $12.95 million.
ASU Oversight and Approval
Because ASU Research Park controls tenant approvals, all new occupants must meet the park’s use requirements.
“You have to apply for the privilege to own property here, and every tenant must be approved by ASU,” Wichterman said.
Despite restrictions, demand remains strong.
“There was plenty of interest from local and regional developers,” Wichterman added. “But McHenry’s ability to purchase without financing made his offer stand out. With one decision-maker instead of two, you can close much quicker.”