Newmark & CBRE announced the $110 million sale of PetSmart’s corporate headquarters campus in Phoenix to Portland, Oregon-based BPM Real Estate Group.
CBRE’s Barry Gabel, Chris Marchildon and Will Mast along with Newmark’s Kevin Shannon, Ken White and CJ Osbrink represented the undisclosed institutional seller. The collective team previously sold the property in 2011. Newmark’s Nick Kucha represented the buyer, BPM Real Estate Group, in the transaction with David Milestone and Ramsey Daya, also with Newmark, who provided acquisition financing.
PetSmart’s corporate headquarters has been located at 19601 North 27th Avenue in the Deer Valley submarket for the last 23 years. The property includes three, four-story buildings, one of which was built in 1997 and two in 2008, as well as a six-level parking structure. On-site amenities include a recently renovated full-service cafe, a day care center and a fitness center with full-service locker rooms. The 15.1-acre site allows for future development of another 90,000-square-foot building and parking structure.
“BPM Real Estate Group is pleased to add the PetSmart Corporate headquarters to our portfolio of first-class commercial properties,” said Walter Bowen, BPM Real Estate Group’s Founder. “BPM believes in the Deer Valley market and in the important position this property holds in the area.”
The proximity to Interstate 17 and Loop 101 freeways allows major corporations to locate in the Deer Valley submarket and take advantage of a deeper and more diverse labor base, while still maintaining a short commute for corporate decision makers who live in the communities of Scottsdale, Arrowhead and the North Valley.
“The sale of PetSmart’s corporate headquarters is emblematic of what investors desire in today’s marketplace: long term, consistent cash flow from credible tenancy in a dynamic market area,” said Gabel. “The Deer Valley submarket is one of the top performing office locations across Metro Phoenix and has become a target location for major corporate and regional headquarters.”
Shannon added, “Long term single tenant net leased office assets have enjoyed an outsized share of office sales since the pandemic due to their safety. These types of assets have been especially popular with foreign investors and with 1031 exchange buyers taking advantage of an extremely attractive debt market. For this sale, we were able to source an exchange buyer from Portland.”
The property sits within a block of the 460,000-square-foot Deer Valley Towne Center and is within four miles of 1.1-million-square-feet of retail, restaurant, hotel and shopping amenities at Happy Valley Towne Center and The Shops at Norterra.
CBRE previously sold the Consumer Cellular building, which is located less than one mile to the south of the PetSmart Corporate Headquarters, to BPM Real Estate Group in 2018.