110,129-sf multi-tenant Class A office property sold as part of 1031 Exchange
Cushman & Wakefield announced the firm has brokered the sale of Promenade at South Mountain, a 110,129-square-foot multi-tenant office building in Phoenix, Arizona. Originally constructed in the 1990s, the two-story, garden-style office property has recently undergone a significant renovation and repositioning. The property was 95% leased to 21 tenants at the time of sale and sold for $16.6 million.
The buyer was MCS South Mountain LLC, an entity formed by M.C. Strauss Company in Solana Beach, CA. The seller was Alpine Regional Center, LLC.
Mike Coover, Eric Wichterman, Tracy Cartledge, and Robert Buckley with Cushman & Wakefield in Phoenix represented the seller in the transaction.
“During its ownership, the seller spent several million dollars in capital improvements to modernize and transform the property into a market-leading option for tenants. The major renovation and repositioning program entailed exterior and interior upgrades, including resurfacing of the exterior,” said Mike Coover, Managing Director.
Eric Wichterman, Executive Managing Director added, “The property contains a well-diversified tenancy, of which nearly one-third are publicly-traded, credit tenants. The combination of this stability with substantially below market, pre-renovation average rents provided the buyer with an attractive combination of stability and upside potential.”
The property features extensive collaborative common areas, including three central courtyards and two large two-story lobbies. The location is just a half-mile from Interstate 10 and close proximity to Loop 202. The property’s centralized Phoenix location along the border of Tempe provides easy access to downtown Tempe, downtown Phoenix and Sky Harbor International Airport.