Lee & Associates Arizona is proud to announce the
three-office building leasehold sale of Papago Arroyo, 1255, 1275 and
1295 E. Washington St., Phoenix for $40,850,000. Combined, the buildings
total 279,503 SF which calculates to $146.15 per SF. The cap rate was
reported to be 7% based on first year NOI performance.
Lee & Associates’ Coppola-Cheney Group and Jerry Marrell, Principal,
negotiated the sale along with Bob Young and Glenn Smigiel of CBRE. The
buyer was listed as Papago Arroyo Associates, LLC of Honolulu, HI. The
seller was Greenwood & McKenzie RE Investments, of Tustin, CA.
“Papago Arroyo is part of the story that keeps getting better in Tempe.
Located along the light rail system, this three-building campus is only
minutes away from Phoenix Sky Harbor Airport, three major freeways and
Arizona State University, which will always make it attractive to tenants,”
said Andrew Cheney. “The new development underway in Tempe only
adds to this property’s upside, he added.
The stable, Class A project is situated on a ground lease with 68 years
remaining. The highly-sought after location has driven leasing demand for
the remaining space. It is currently at 96% leased.
The buildings were developed in 1998 are situated on the Tempe/
Phoenix border. The property offers 5 per 1,000 ratio of parking, close
access to major freeways, light rail stations and Phoenix Sky Harbor