JLL Capital Markets announced today that it has completed the $103.5 million sale and $80.76 million financing for Anchor Centre, a 333,014-square-foot, Class A office asset in Phoenix, Arizona. The sale marks the largest multi-tenant office deal to trade in Phoenix since the JLL-brokered sale of Biltmore Center in December 2019.
JLL represented the seller, KBS and procured the buyer, TerraCap Management, LLC. Additionally, JLL placed the floating-rate acquisition loan through a financing subsidiary of Colony Credit Real Estate, Inc. (NYSE: CLNC).
“When we bought the building, we changed the entire ambiance of the building by creating a new high-end indoor-outdoor lounge, a state-of-the-art conference room and a stunning new game room. In doing so Anchor Centre became one of the most attractive and flexible workspaces in the highly desirable Camelback Corridor. Tenants located in this submarket demand high-end finishes and the prestige that is inherent with holding an office in this market,” says Tim Helgeson, asset manager for Anchor Centre and senior vice president at KBS.
“The improvements and spec suite program that KBS implemented received praise from other landlords in the region and help increase demand for creative office space by blue-chip and ‘next-generation’ technology companies and seized upon the opportunity to add much-desired amenities to this asset in order to appeal to the millennial workforce that has migrated into the surrounding in-demand neighborhoods of Arcadia, Paradise Valley and Biltmore. The Camelback Corridor is also home to numerous upscale retailers, dining, and entertainment options, as well as connectivity to all of metro Phoenix via immediate access to SR 51,” Helgeson added.
Anchor Centre is located at 2201 and 2231 East Camelback Rd. boasting a “main and main” location immediately adjacent to the prestigious intersection of 24th St. and Camelback Rd. The asset is ideally positioned between two of the most notable retail centers on Camelback Rd., The Shops at Town & Country and Biltmore Fashion Park. Additionally, Anchor Centre is proximate to executive housing in North Central Paradise Valley and Arcadia, and is poised to take advantage of the continuous multi-housing and retail development along Camelback Rd.
Since 2012, more than $22.9 million has been invested into Anchor Centre, including lobby modernizations, renovated common areas, amenity spaces and tenant improvement packages, which has served as a catalyst for recent leasing velocity. The stable tenant roster at the 93.2%-occupied property contains a mix of national and international firms, expanding regional firms and local businesses. Anchor Centre offers a variety of on-site amenities, including a fitness center, tenant lounge/game room, conference facility, underground parking and upscale dining at The Gladly.
The JLL Capital Markets team representing the seller was led by Director Ben Geelan, Senior Managing Director Michael Leggett and Managing Director Brian Ackerman.
Financing efforts were led by JLL Capital Markets Executive Managing Director Kevin MacKenzie and Director Jason Carlos.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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