With a $24.65 million purchase, Lincoln Property Company (LPC) has added 2777 Camelback to its Class A Phoenix office portfolio. The 104,618-square-foot building is located at 28th Street and Camelback Road, in a section of the Camelback Corridor undergoing a wave of new development.
The acquisition brings LPC’s metro Phoenix Class A office portfolio to more than 3.5 million square feet across 20 assets. This includes four buildings (Biltmore Commerce Center, 3131/3133 Camelback, and 2777 Camelback) totaling approximately 660,000 square feet along the prestigious Camelback Corridor.
“The land surrounding 2777 Camelback is enjoying a major revival, thanks to multiple new development projects,” said Lincoln Property Company Executive Vice President David Krumwiede. “This is a significant accomplishment in the high-barrier-to-entry Camelback Corridor submarket – and one that we will support as we upgrade 2777 to an even higher standard of quality.”
Directly to the west of 2777 Camelback, StreetLights Residential is developing a five-story, Santa Barbara-style residential community with 253 luxury apartment homes. The new project sits on land previously hindered by receivership, but that is now under new ownership. To the east of 2777, LaPour is developing the mixed-use Camelback Collective, which includes a 160-room AC by Marriott hotel and 120,000 square feet of new Class A office space.
LPC purchased the 2777 building from DRA Advisors/Fountainhead Equity Partners and has plans to immediately begin repositioning the asset with lobby and common area renovations, an indoor tenant lounge and conference facility, a new collaborative outdoor lounge area, improved signage and upgraded landscape and hardscape.
It will also introduce institutional-quality management via the LPC property management team, who currently manages approximately 6 million square feet of LPC-owned and third-party office, industrial and retail space across the region.
These efforts add to the company’s more than $6 million in renovation efforts just completed or underway at buildings across the metro Phoenix market – ranging from Gainey Center and Luhrs City Center to Biltmore Commerce Center, Promenade Corporate Center, and 3131/3133 Camelback.
“Since 2012, The Camelback Corridor has recorded positive office space absorption of more than 214,000 square feet annually,” said Lincoln Property Company Director of Real Estate John Orsak. “Institutional owners have poured hundreds of millions of dollars into upgrading properties in this submarket, and they continue to invest with renovations and new construction. Like us, they see a very strong future for Camelback Corridor buildings, and are positioning themselves to support a long runway of tenant demand.”
Tenants at 2777 Camelback include UMB Bank, WFG National Title, The Lavidge Company, Hill International and Avison Young. “We also have approximately 37,000 square feet of space available for lease at the property, including a full second floor with a 28,000-sqaure-foot floorplate,” said Krumwiede. “This is a rare find on the Camelback Corridor and is ideal for tenants looking for the amenities of this central location within a very appealing, renovated building.”
Amenities at 2777 Camelback include 13-foot ceilings, modern open layouts with exposed concrete aesthetics, flexible 36,000-square-foot floorplates, views of surrounding mountains and a two-level underground parking garage with direct elevator access to tenant spaces. The building offers prominent signage exposure to Camelback Road and walkability to more than a dozen restaurants and Biltmore Fashion Square. It is within minutes from State Route 51 and Sky Harbor International Airport.
Chris Toci of Cushman & Wakefield served as the investment sales broker. JLL Managing Director John Bonnell, Senior Vice President Brett Abramson and Vice President Chris Latvaaho serve as the building’s exclusive leasing brokers.