Dec. 23, 2013–CBRE has negotiated the sale of two premier class A office buildings in the Phoenix metro area for a total consideration of $51 million. The sale included the 175,186-square-foot building at 5090 N. 40th St. in Phoenix and the 152,081-square-foot Scottsdale Financial Center III located at 7272 E. Indian School Road in Scottsdale, for a combined 327,267 square foot investment. The buildings commanded sale prices of $26.35 million and $24.65 million, respectively.
Jim Fijan and Will Mast with CBRE’s Phoenix office brokered the transaction between Newport, Calif. based CJK Investments, who sold the building to a joint venture between Lowe Enterprises in Los Angeles and J.P. Morgan Asset Management.
“This sale demonstrates the continuation of strong demand from institutional buyers seeking high-quality, value-add office properties in the Phoenix Metropolitan office market,” said CBRE’s Fijan.
Built in 1988, 5090 N. 40th St. sits in the heart of the Camelback Corridor, considered the premier business corridor in metro Phoenix. The building has great access to numerous retail and dining amenities including the Biltmore Fashion Park, North Italia, La Grande Orange, and Chelsea’s Kitchen. Phoenix’s Camelback Corridor includes numerous low- to mid-rise class A office buildings, retail centers and several world class hotels. 54 percent leased at time of sale, 5090’s major tenants include Bar-S Foods; Hatton Consulting, a federally registered full service asset management company; and Newland Communities, the largest private developer of planned residential and urban mixed-use communities in the United States, among others.
Also built in 1988 and most recently renovated in 2012, the brick-clad, five-story Scottsdale Financial Center III is located in downtown Scottsdale with proximity to luxury hotels, high-end shopping and first-class dining, executive housing and many other cultural and recreational attractions. Scottsdale Financial Center III was 90 percent leased at time of sale. Tenants include Regus, The Colony Group, Nestle Purina Petcare Company, Aderant, Cornerstone Advisorrs and Career Builder, among others.