PHOENIX—Colliers International in Greater Phoenix recently completed the sale of the class A, 68,443-square-foot Chandler Corporate Center II, which was 100% occupied at the time of the sale. Palisades Capital Realty Advisors of Los Angeles purchased the building, located at 500 N. Juniper Dr. in Chandler, from The Rockefeller Group. The asset sold for $14.5 million.
Mindy Korth, executive vice president, Phil Breidenbach, executive vice president, and Kirk Kuller, vice president, of Colliers International, represented the seller.
Chandler Corporate Center earned a LEED Silver Core and Shell Certification. The building was constructed in 2009 on 8.75 acres within Chandler Corporate Center North, a master-planned business park at the northwest corner of McClintock Drive and Chandler Boulevard. Three of the five tenants in the two-story office building are institutional-quality companies that account for 76% of the space.
Breidenbach, along with Paul Sieczkowski, executive vice president, and Rob Martensen, vice president, with Colliers International in Greater Phoenix, also represent The Rockefeller Group on the recently completed 82,000-square-foot Chandler Corporate Center III, which is available for immediate occupancy. Additional land is also targeted for the future Chandler Corporate Center IV.
Korth tells GlobeSt.com, “This transaction demonstrates that cap rates have room to move downward. This asset sold below replacement cost, even at 100% leased, so there was a value-add component for the buyer. At year's end we have seen square footage go up in 2014; we will continue to see that in 2015.
“Palisades Capital Realty Advisors is the perfect buyer for this transaction,” Korth adds, explaining, “This is the twin building to 585 North Juniper Drive, their first Phoenix-area purchase, which they acquired earlier this year. Both buildings were purchased as stabilized assets with outstanding tenant rosters.”
As a whole, Chandler Corporate Center North is a 75-acre business park that will contain 1.28 million square feet of building area at completion. It is surrounded by a vast number of daytime amenities and three freeways—Loop 202 to the south, I-10 to the west, and Loop 101 to the east—providing Valley-wide access. Chandler Fashion Center is a mile to the east.
In addition to the Chandler Corporate Center properties, Colliers also markets The Rockefeller Group's other Phoenix area properties, which include Rockefeller Group Chandler 101, Rockefeller Group North Gateway, Rockefeller Group Chandler Crossroads and Rockefeller Group Gilbert Crossroads.
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