PHOENIX—CBRE has completed the sale of Desert Ridge Corporate Center located at 20860, 20830 and 20910 N. Tatum Blvd. in Phoenix. The institutional grade office and retail development is located in the Desert Ridge master-planned community. The asset totals 293,161 square feet and commanded a sale price of $58.6 million. The property was 75% leased at time of sale.
Barry Gabel and Chris Marchildon with CBRE's Phoenix office, along with Kevin Shannon, Ken White and Paul Jones in Los Angeles, negotiated the transaction between the buyer, Los Angeles-based Regent Properties, and the seller, FCA Partners, LLC of Charlotte, NC.
Gabel tells GlobeSt.com, “It was a good team effort. The buyer was opportunistic and took a value-add approach with the opportunity to lease the vacant space and improve rents. The location is a thriving submarket near retail that has very little vacancy. The asset has great visibility. It is also situated between the North Scottsdale and Deer Valley submarkets, allowing workers to have amenities and affordable housing options. The asset is in the path of growth from a residential perspective. There are a lot of economic drivers: retail, hotel, residential and medical.
“Despite the fact the property is not fully stabilized, Desert Ridge Corporate Center attracted significant interest from local, regional and national buyers. This is definitely a testament to the continued recovery of the Phoenix investment market as well as the resiliency of the Paradise Valley submarket, which continues to perform at the top of the metro Phoenix market.”
DRCC consists of two class A office buildings (137,983 and 137,225 square feet, respectively) and a 17,953-square-foot, multi-tenant specialty retail building. The property is located on land encumbered by a State of Arizona ground lease with 78 years remaining. Tenants include GEICO Insurance, Vantage Retirement, Wells Fargo Bank, C.H. Robinson Worldwide, K. Hovnanian Homes, Summit Energy, SimonMed Imaging and Scottrade.
Developed in 2007, DRCC benefits from an amenity-rich location in the Paradise Valley submarket. The property is minutes from the 1.2 million-square-foot Desert Ridge Marketplace, two championship golf courses and the 628,000-square-foot High Street mixed-use development. DRCC is also highly accessible at the intersection of the Loop 101 Freeway and State Route 51.
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