Deal-Tracker: St. Luke's Building Sells

PHOENIX—In this week’s Deal-Tracker, Cassidy Turley announces the sale of a 49,816-square-foot medical office building at 555 North 18^th Street in Phoenix’s Downtown Submarket. San Francisco-based Stockbridge Funds purchased the property for $8.45 million from Chicago-based Heitman Real Estate Investment Management. Executive managing director Eric Wichterman and senior vice president Mike Coover with Cassidy Turley negotiated the transaction on behalf of the buyer and seller. Built in 2006, St Luke’s Medical Building is a multi-tenant medical office project on 5.63 acres. The property is located north of Van Buren Street on 18^th Street, adjacent to St. Luke’s Medical Center and one-half mile from Interstate 10. St Luke’s Medical Building was 86% occupied at the time of sale. The new owner plans to hold the property and continue to lease-up the remaining space.

-PHOENIX—P.B. Bell Companies and Davis Enterprises have been selected by the City of Phoenix to redevelop the historic Barrister Place building in downtown Phoenix. City officials chose the P.B. Bell Companies/Davis Enterprises collaboration from among seven bidders seeking to redevelop Barrister Place and two adjacent parcels on the southeast corner of Central Avenue and Jefferson Street. The collaborators’ plans call for an adaptive-reuse renovation effort that centers on creating and operating a boutique mixed-use community on the site. Special emphasis will be placed on preserving the building’s historic façade while modernizing the interior to carry it, and the accompanying development, into the future. Following construction, P.B. Bell Companies will market and property manage the residential and commercial spaces, and Davis Enterprises will oversee leasing for the retail space.