Situated on 3.9 acres near the intersection of Camelback Road and 24th Street, the 11-story towers are comprised of 469,587 sf of office space and 52,793 sf of first-floor retail space. Esplanade I, located at 2425 E. Camelback Rd., was built in 1989 and its near twin, Esplanade II at 2525 E. Camelback Rd., rose in 1990. Both towers are linked to a four-story parking garage.
"These class A trophy assets will attract a variety of interest ranging from off-shore money to private money to institutions and real estate investment trusts," says Chris Toci, a senior director with Cushman & Wakefield of Arizona Inc. "I wouldn't be surprised if [the buildings] reach $150 million." He is partnering with C&W's Jerry Jacobs and Larry Downey to sell the buildings for ING Clarion.
Toci tells GlobeSt.com that he expects to receive more than 20 offers for the towers. "There won't be another sale this big in Phoenix for another 10 years," he says.
ING Clarion purchased the towers, developed by Opus West Corp., in 1997, for $167 per sf or $87 million. The towers are 94% occupied by tenants like locally based Vestar Development Corp., MCI, local law firms Cohen, Kennedy, Dowd & Quigley and Tiffany & Bosco PA and Piper Jaffray Cos.
"There's no near term roll and mid-term upside since the in-place rents are below market," Toci says. Rents range from the mid to high $20s.
Toci says the five-building Camelback Esplanade is 95% occupied. The only large block of contiguous space is in the 10-story, 217,548-sf Esplanade III, which is 65% leased. Earlier this year, 4501 Northpoint LP, a fund managed by Prudential Real Estate Investors of Parsippany, NJ sold Esplanade III for $51 million to Chicago-based Hearn Co.
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