CBRE has completed the sale of Cornwell Corporate Centre, a 63,071 sq. ft. office development located in Scottsdale, Arizona. The transaction includes one two-story building and two one-story office buildings located on approximately five acres. The property, south of the southeast corner of Scottsdale Road and Greenway Parkway along 73rd Street, is positioned squarely in the Scottsdale Airpark submarket.
The seller was Cornwell Corporation. The buyer was Kramer-Wilson Company, Inc., based out of Encino, California. Barry Gabel, Chris Marchildon, Brad Anderson and Mike Strittmatter with CBRE Phoenix represented the seller in this off-market transaction. Total consideration for the sale was $14.7 million.
“Our family is very pleased with the outcome of this transaction. We feel good knowing that the new owner will continue to take great care of the property and tenants, like we have for the past thirteen years,” said Brian Cornwell with Cornwell Corporation.
Several factors made Cornwell Corporate Centre an appealing opportunity for investment including proximity to Kierland Commons and the Scottsdale Quarter, major visibility along Scottsdale Road and high accessibility to the rest of the Valley via Loop 101.
“We are excited to reenter the Phoenix real estate market with this unique and strategic acquisition,” said Brian Gibbons with Kramer-Wilson Company. “We’re eager to expand our Southwestern U.S. portfolio over the next 3 years.”
Another investment highlight of Cornwell Corporate Centre was a major opportunity for rent appreciation. A large share of the development’s tenant leases features in-place rents that are 10% below market lease rates. As these leases expire, the property’s new ownership will have an opportunity to boost revenue by bringing rents into line with the rest of the market.
“Our economic advisors project explosive rental growth in the Scottsdale Airpark submarket over the next three years,” said Barry Gabel with CBRE Phoenix. “Cornwell Corporate Centre provided the buyer with an opportunity to capitalize on the improving submarket.”