TUCSON—Colliers International in Greater Phoenix recently completed the sale of a 143,650-square-foot Class A office building for $18.95 million, or $131.95 a square foot. The transaction is the largest office sale in Tucson based on square footage since January of 2008 and involves one of the highest quality assets in the market.
W. P. Carey Inc. on behalf of CPA:17 – Global, one of its managed REITs, purchased the building which is leased to a single tenant. The seller was Summit Properties of Seattle.
Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.
Moffitt tells GlobeSt.com the building is 100% occupied by Raytheon, southern Arizona's largest employer.
“The defense contractor business has a large presence in Tucson with more than 10,000 employees in the area” says Moffitt. “This was a key feature in the deal. There is also supplemental land approved for development.”
“This sale shows demand for assets in the Tucson market that have investment-grade tenants,” Bauman says.
Constructed in 2002, the building is located at 3350 E. Hemisphere Loop in Tucson and is situated on 16 acres at the Tucson International Business Center near the airport.
“The buyer acquired this Class A office building well below replacement cost with a high-quality tenant in place,” Glassmoyer says.
Gino Sabatini, W. P. Carey managing director and co-head of Global Investments, notes, “The quality of the tenant and the criticality of the asset to their operations made this an attractive investment for W. P. Carey. The building's size along with significant improvements made by the tenant are key factors in meeting the tenant's unique requirements and consequently enhanced the investment value of the asset for us.”
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