On behalf of Arizona-based DMB, the Phoenix office of JLL has completed the $18.7 million sale of Canyon Village, a Class A mixed-use office project and cornerstone development within the DC Ranch masterplanned community in Scottsdale, Arizona.
JLL Senior Managing Director Dennis Desmond and Senior Vice President Brian Ackerman represented the property seller, Canyon Village LLC (an entity of DMB), in cooperation with DMB Vice President of Development Michael Burke and Director of Leasing and Sales T.A. Shover.
The team was assisted by Alfred Hackbarth, retail investment expert and Senior Vice President of SRS Real Estate Partners, and by JLL office leasing experts, Managing Director John Bonnell and Vice President Brett Abramson.
The buyer is Laurus Corp., a Los Angeles-based private real estate investment and development firm.
“As a DMB-built project, Canyon Village carries an unwavering quality and value in a niche location. There is no other office property quite like it in North Scottsdale,” said Desmond. “This buyer purchased Canyon Village knowing that Class A office space in Phoenix is coming back very strong and very quickly. They have tremendous confidence in that recovery and in this superior asset.”
Totalling 93,890 square feet on 5.6 acres, Canyon Village includes four buildings and an adjacent 289-car parking structure. It is located at 18801, 18835, 18867 and 18899 N. Thompson Peak Pkwy. in Scottsdale, on the northeast corner of Thompson Peak Parkway and Legacy Boulevard, and in the heart of DC Ranch, an 8,800-acre masterplanned community situated at the base of the McDowell Mountains. It is just five minutes from the Loop 101 freeway.
Canyon Village is primarily home to office tenants, but also includes high-end medical office, retail and restaurant users such as Ciao Wine Bar & Bistro and The Village Health Club’s hot yoga studio. It is an immediate neighbor to the award-winning DC Ranch Village Health Club and Spa, and Silverleaf, a 2,000-acre private residential community boasting high desert canyons, a world-class golf course, limited custom homesites starting at $1 million and ranging from 1 to 15 acres, and luxury homes from $1 million to more than $7 million. The 2014 median home value within a one-mile radius of Canyon Village was $608,782 – a more than 300 percent difference from the $195,930 2014 median home value for all of metro Phoenix.
“It is rare to find all of these amenities in one location – a landmark site, a highly designed formal Mediterranean environment, almost unrivalled access to executive housing and decision makers, a highly educated labor pool and meticulous property management,” said DMB Vice President Mike Burke. “We took all of these factors into consideration when building Canyon Village, laying a strong foundation for a long-term success story.”
At the time of purchase, Canyon Village was 75.9 percent leased, with expectations that this figure will increase quickly as development continues around the site and the Phoenix office market enjoys a sustained recovery.
According to JLL research, the subset of Phoenix’s Class A office space is significantly outperforming all other office classes. As of year-end 2014, the Class A vacancy rate was 18.7 percent (compared to 21.4 percent Valley-wide) and accounted for 60 percent of the year’s total net office space absorption.