(To read more on the TIC market, click here.)

TEMPE, AZ-Papago Spectrum, a 159,764-sf, class A office building, has been sold for nearly $26.38 million to the San Diego-based Triple Net Properties LLC, one of the nation's top tenants-in-common buyers.

The five-year-old building at 1225 W. Washington St. is a key fixture in the Papago Park Center, a 522-acre, $2-billion, mixed-use development near Sky Harbor International Airport. Mike Garlick, principal with Phoenix-based Lee & Associates Arizona, represented the seller, Papago Spectrum LLC, in the property's sale. Ryan Gallagher and Jeff Hanson with Grubb & Ellis Co.'s Newport Beach, CA office and Brendan Considine of Triple Net Properties in South Coast Metro, CA helped to close the deal for the buyer. Brokers involved in the deal confirm that the 87%-leased Papago Spectrum sold for its asking price, which was about $26.38 million.

Major tenants include Affiliated Computer Services Inc., Calibrus Inc., behavioral research firm Delve of Phoenix and Konica-Minolta USA. Office rents in the area average from $1.75 per sf to $2.00 per sf.

Though Papago Spectrum LLC has divested itself of one property, "it still owns four other buildings on that same intersection," Garlick says. In addition, the seller owns a nine-acre parcel in the park, which is slated for future development.

According to Gallagher, the property is an excellent addition to Triple Net's extensive nationwide portfolio of commercial real estate properties. The area's strong leasing activity, as well as its location, were two of the main attractions of the property, Gallagher tells GlobeSt.com. "It's a great location and has strong credit tenancy," he adds.

Gallagher also says that Triple Net's first purchase in Papago Park is part of an overall plan on the part of the TIC group to locate and acquire more investment property in the Arizona market. "They're aggressively looking for more property out there," Gallagher says, "commercial property--office, industrial and retail."

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Office
Phoenix