"It's the only submarket with any significant speculative office development going on right now. There's plenty of demand," Eric Wichterman, a senior vice president and principal with Grubb & Ellis/BRE Commercial's Phoenix office, tells GlobeSt.com. "Wolff is interested in single-tenant properties. It's the old 'location, location, location.'"
Located at 8324 E. Hartford Dr., the building is part of the six-building Sonoran Corporate Center in the master-planned Perimeter Center just north of Scottsdale Airpark. The two-story property was built in 2002. Wolff has owned a second building in the office park since 2002, says Wichterman.
The deal included a leaseback to Rowland for 10 years at $20 per sf with rental increases. Rowland is a contractor specializing in high-end medical and church properties. It plans to use the capital raised from the sale to enhance its growing Texas operations.
North Scottsdale's office vacancies of 16.7% are well below the 20% market average for Phoenix, according to Wichterman. With such stellar occupancies, the submarket is the only one experiencing speculative new office construction. Wichterman along with Stan Shafer and Jeff Wentworth, also with Grubb & Ellis/BRE Commercial, represented both parties in the deal.
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