Phoenix, Arizona — Newmark Knight Frank (NKF) announces the sale of The Grand at Papago Park Center Phase I by Lincoln Property Company and Goldman Sachs & Company LLC. The Class A+, four-story, 213,026-square-foot trophy office building located at 1101 West Washington Street in Tempe was sold for $90 million or approximately $422.48 per square foot, to Susquehanna Holdings, Ltd.
NKF’s Capital Markets group Executive Managing Director CJ Osbrink represented the sellers, Lincoln Property Company and Goldman Sachs & Company LLC, in the sale. Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairman and Divisional Head of International Capital Markets Alex Foshay, Executive Managing Directors Paul Jones, Ken White and Brunson Howard and Senior Managing Director Rick Stumm, who work with Osbrink, assisted in the transaction.
“The Grand at Papago Park Phase I is a trophy office building 100% leased with investment grade tenancy in one of the nation’s fastest growing markets,” stated Osbrink, who acted as local lead on the project. “Given the new, Class A construction, positive submarket fundamentals and credit tenancy with good term and below market rents, this opportunity yielded an incredibly competitive buyer pool and ultimately sold to a first-time buyer in Arizona.”
“This Phase I sale once again demonstrates that best-in-class office product in best-in-class innovation markets like Tempe shape the market. The competition for this asset was heated as capital recognized the rare opportunity offered by owning an early phase in what will ultimately be a uniquely prestigious master-planned park,” added Shannon.
Developed by Lincoln Property Company in 2017, The Grand at Papago Park Phase I is among the newest and highest quality office projects in all of Phoenix, winning the coveted Development of the Year award by the NAIOP in 2018. Best-in-class amenities at the trophy office asset include an on-site Starbucks affiliated restaurant/cafe, monument signage, tenant lounge, outdoor lounge, fitness center, walking paths and break room/conference facilities. The Grand at Papago Park Center Phase I is 100% occupied by MUFG Union Bank and SAP America, providing ownership with blue-chip, investment-grade tenancy.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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