The sale of 6811 E. Mayo Blvd. was brokered by Jim Fijan and Jerry Roberts, executive vice presidents at CB Richard Ellis in Phoenix. According to Roberts, the deal was an extension of negotiations initiated at the time Miller Global, a partnership of Miller Properties Group and Global Holdings Inc., purchased North Scottsdale Corporate Center I in early 2006. In late September, Miller Global sold Corporate Center I to Boston-based AEW Capital Management LP for $53 million.
"There was a lot of competition for the first phase of the project, but there was none for this because they rolled right into negotiations for the second building," Roberts says.
The entire project consists of four phases and occupies all four corners of the intersection of Mayo Boulevard and North Allied Way. Phases three and four, consisting of a build-to-suit for a fitness center operator and a cluster of four small owner-user buildings, were completed and sold prior to phase two's delivery.
Roberts tells GlobeSt.com that Miller Global bought the four-story Corporate Center II in shell condition and plans to complete interior build-out to tenant requirements. He says the buyer intends to sell the building once it is fully leased.
Roberts and Fijan have the leasing assignment, along with CBRE colleague Corey Hawley. Roberts estimates it will take about nine months to reach full occupancy. He quotes annual rents at $30 per sf, full service.
"The market should allow us to achieve the asking rent," Roberts says. "Vacancy rates have come up a little bit in the area, but there's still a lot of decent tenant activity. We've got several proposals we are negotiating. Probably the biggest is for about half the building."
The 152,249-sf Corporate Center I at 18500 N. Allied Way is a mirror image of Corporate Center II. At its sale time, it was fully leased to Allied Waste Industries Inc. for use as its corporate headquarters. Reportedly it was the second highest sale in the Phoenix market on a per-sf basis in the first three quarters of the year.
Roberts reports Miller Global Properties is looking for additional investment opportunities in the Phoenix area. With offices in Denver, New York City and London, the company owns 65 office and hotel properties in 18 cities in the US and Europe. The portfolio consists of 8.25 million sf of office space and 1,500 hotel rooms valued at more than $2 billion.
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