PHOENIX—A joint venture of EverWest Real Estate Partners and CenterSquare Investment Management purchased Madison Square, a 177,312 square-foot office property located at 16th Street and Missouri Avenue in Central Phoenix, from Orsett Madison LLC for $21.95 million.
Newmark Grubb Knight Frank negotiated the sale of Madison Square, a two-building office complex located at 5343-5353 N. 16th St.
Chris Krewson, Mike Garlick and Michael McQuaid, senior managing directors in the NGKF Phoenix office, represented both the buyer and the seller in the off-market transaction, and secured the exclusive marketing assignment for the property.
Krewson tells GlobeSt.com, “The key factor was the location. The area has been the focus of huge redevelopment for retail. And it's one of, if not the nicest building on 16th street. There is some nice multifamily in the area; the whole area in general is seeing revitalization and a lot of younger people. There was also the opportunity to put some capital into the property.”
Built in two phases in 1986 and 1990, Madison Square includes two, four-story office buildings and underground parking. The project was 65% occupied at the time of sale.
The buyer plans to reposition the value-add asset through a multi-million upgrade to Madison Square. The new ownership is working with Phoenix Design One, an interior architecture and design firm, to redesign and remodel the project, taking into account the complex's fundamental qualities and outstanding location. In addition to its easy access to State Route 51 and Phoenix Sky Harbor International Airport, Madison Square's 16th Street Corridor location places it squarely in the middle of a submarket which has enjoyed a burst of multifamily activity and a variety of recent retail redevelopments. The neighborhood's positive changes and infill location, combined with the new ownership's planned improvements, make Madison Square a very attractive environment for employers and their employees.
“The new ownership is excited,” Krewson adds. “They plan to start improvements in the next 30 days.”
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