PHOENIX—ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total of $11.1 million. CBRE negotiated the sale to Melcor Development of the 24,154-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Dr. in Scottsdale, and the 35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane in Phoenix, for a combined 59,220-square-foot investment. The buildings commanded sale prices of approximately $4.1 million and $7 million, respectively.
Barry Gabel and Chris Marchildon with CBRE's Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Edmonton, Alberta, Canada-based Melcor Developments Arizona, Inc., was represented by Tom Swan with Amcal Southwest.
ViaWest originally purchased the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition and ViaWest was able to lease up the property from zero percent in late 2007 to 100 percent by mid-2009 during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures. The Perimeter Parkway property was bought at a trustee sale in January 2011 with a portion of the property leased and the balance in shell condition. Within one year of purchase the property was 100 percent leased.
Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.
“These two assets are excellent properties that are of great quality and extremely well-located. Melcor should have much success with them. As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns,” says Steven Schwarz of ViaWest Group.
CBRE's Gabel tells GlobeSt.com his office tracks sales over 20,000 square feet and $1 million in value. In 2011 buildings in the North Scottsdale/Airpark submarket brought $114 per square foot; in 2013, 16 transaction brought $162.50 per square foot. So far in 2014, four office transactions have averaged $180 per square foot.
“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” says Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway making them very attractive to both current and prospective tenants, and solid investments for the buyer.”
The sale marks Melcor Developments Arizona, Inc.'s entrance into the Arizona market and ViaWest has been retained to continue management of both properties keeping its management portfolio in excess of 1.5 million square feet.
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