Phoenix, Ariz. — Newmark Knight Frank (NKF) has announced the sale of the Wells Fargo Building at Papago Park for $52.4 million, or $244.51 per square foot. The three-story, 214,303-square-foot office building located at 1150 West Washington Street in Tempe is 100% occupied by Wells Fargo.
NKF Executive Managing Director CJ Osbrink, Co-Head, U.S. Capital Markets Kevin Shannon and Executive Managing Directors Paul Jones, Ken White, Rick Stumm, Brunson Howard, and Mike Garlick represented Phoenix Investors #22, L.L.C, dba Greenwood & McKenzie, in the marketing and sale of the Wells Fargo Building at Papago Park. The buyer, an affiliate of Menlo Equities, was self-represented.
“The Wells Fargo Building at Papago Park provides new ownership the opportunity to acquire a secure and attractive income stream with investment-grade credit tenancy,” commented NKF Executive Managing Director CJ Osbrink, who led the team in the sale of the property. “Offering excellent regional access in a highly desirable location in Papago Park Center, the Wells Fargo Building at Papago Park was a highly appealing investment opportunity to investors and saw a broad and aggressive buyer pool.”
NKF research noted that Papago Park Center is one of Tempe’s most active and robust micro-submarkets with $67.3 million invested in office product in the past 24 months. The ±500-acre, mixed-use development spanning 2.6 MSF of office space (existing and under construction) is located in an area that is also a hotbed for multifamily development with 1,316 units currently existing and under construction. With average Class A office rental rates in Papago Park Center at an all-time high, pushing $32.69 per square foot (full service gross), Papago Park Center is in high demand from STEM and FIRE (financial, insurance, real estate) tenants who desire to be located within Tempe’s urban core.
About Menlo Equities
Menlo Equities is a private, real estate investment firm and SEC Registered Investment Advisor headquartered in Menlo Park, California. Menlo invests in in office/R&D, data center, life sciences and industrial properties located in select innovation-driven markets in the United States through three vertically-integrated investment platforms: core-plus, value-add, and development. Since its founding in 1994, Menlo has acquired or developed 117 properties with a total capitalized value of approximately $6.4 billion through institutional joint ventures, syndicated investment vehicles, and seven commingled funds. The firm has raised capital from a diverse investor group that includes financial institutions, foundations, public pension funds, private investment funds, high net worth individuals, and family offices. Menlo currently has $2.1 billion of real estate assets under management and has additional offices in Austin, Newport Beach, Santa Clara, and San Diego. For more information, please visit www.menloequities.com.
Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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