TEMPE, AZ—The final property to be sold from the PS Business Parks portfolio brings the total portfolio sale price to approximately $54.5 million. Singh Organic Soils purchased the final 23,952-square-foot building, McKellips Business Park, located at 1733 E. McKellips Rd. as an investment. The multi-tenant facility was constructed in 1980 and is 100% leased, with approximately 45% office space and 55% industrial use. The building has solar-tinted windows and grade-level loading. The location has easy access to Loop 101 and 202 freeways, in addition to Sky Harbor International Airport.
Senior managing directors Bob Buckley, Tracy Cartledge, Steve Lindley and associate, Ben Geelan, with Cushman & Wakefield negotiated the transaction.
Buckley tells GlobeSt.com: “Our group was honored to take the industrial portfolio to the market. The six-building collection offered high-quality facilities in land-constrained areas with great user appeal. This investor and Stockbridge Capital Group will benefit from significant upside opportunity with these properties.”
The PS Business Parks portfolio consisted of six buildings that offered approximately 678,887 square feet of multi-tenant industrial space with an average occupancy rate hovering around 90%. The portfolio was sold by PS Business Parks LP of Glendale, CA in a strategic move to dispose of Arizona assets. The first five buildings were purchased by San Francisco-based Stockbridge Capital Group LLC in November 2014. Those buildings included Corporate Park and Metro Business Park at 2320-2432 W. Peoria Ave. in Phoenix; Mesa Station at 1833 W. Main St. in Mesa, AZ; and University 1 & 2 at 1605-1797 W. University Dr. in Tempe, AZ.
"Properties in the Tempe market are increasing in value as a result of growing tenant demand for space in the East Valley. This particular building has solid occupancy and impressive appreciation opportunity," said Buckley.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
