"This sale represents the continuing trend of strong demand for major office properties," Jim Fijan, an executive vice president with CB Richard Ellis Inc., tells GlobeSt.com about the eight-story building at 80 E. Rio Salado Parkway on the shore of Tempe Town Lake. "All the pricing is off the charts and nothing in Tempe has ever sold for this much."
Crow Holdings was one of 15 potential buyers vying for the asset, says Robert Burnand, a vice president with Trammell Crow Co.'s Phoenix office. He, Fijan and CBRE's Jerry Roberts brokered the deal.
The new owner is not known for aggressively competing for Valley projects. "It's a new trend for Crow to focus on Phoenix," Fijan says. "They're looking to spend more money here."
Burnand says Crow Holdings won the deal because of its solid reputation and closing terms. "They were one of the high offers, but their quality and five-week closing period caused SunCor (Development Co.) to go with them," he says.
Phoenix-based SunCor developed Hayden Ferry Lakeside as the first phase of an 800,000-sf, master-planned, office and retail development. This summer, SunCor plans to break ground on a second phase, a 12-story, 300,000-sf, class A office tower.
Completed in 2002, Hayden Ferry Lakeside features 14,000 sf of ground-level retail space and a parking structure. The office building is 91% occupied although the retail space has yet to be leased.
SunCor is the lead tenant in the building with 40,785 sf. Other large tenants are Smith Barney, 21,425 sf; McCarthy Building Cos. Inc., 18,378 sf; and MedAire, 12,157 sf. The average rental rate is $28 per sf. "This is a core investment because of the quality construction, stable tenant base and minimal roll over," Burnand says, adding there is no lease rollover for four years.
Crow Holdings purchased Hayden Ferry Lakeside through a new investment fund. It's tapped SunCor to manage the property and extended the leasing assignment with CBRE.
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