VanTrust Real Estate, LLC has sold a single-tenant office building, occupied by American retail and health care company CVS Health, for $40.4 million, or approximately $293 per square foot. The building, Four Gateway, is located at 444 N. 44th Street in Phoenix. The buyer is Crown Realty & Development. Jim Fijan and Will Mast of CBRE in Phoenix negotiated the transaction.
VanTrust purchased the 138,240-sq.-ft. building, which is located at 444 N. 44th Street in Phoenix, in April 2015 for just over $22.9 million. At the time the building was occupied by State Farm on a short-term lease while the company waited to consolidate operations at its new regional campus at Marina Heights on Tempe Town Lake. CVS, which signed its lease in April of this year, occupies the entire building. This lease marked an expansion for the heath and retail giant in the Phoenix market. They also have a significant specialty pharmacy operation in Chandler.
“Four Gateway was VanTrust’s first acquisition in the Phoenix market, and the sale to Crown Realty & Development was the culmination of 16 months of challenging work for our team,” said Keith Earnest, executive vice president with VanTrust. “The collaboration between CVS, State Farm and each broker involved in the transaction was amazing.”
“It’s always rewarding to help a client bring their investment strategy full circle,” said CBRE’s Fijan. “Van Trust made substantial improvements to the property in their short time as owner, including a new parking garage. Securing CVS to replace State Farm further solidified the property’s appeal, and ensured significant value for its next buyer.”
Fijan continued, “Having our team sell Van Trust the property last spring, negotiate CVS’s lease in April, and now execute the exit strategy is what we live for in this business.”