Five-Building Portfolio Sells in Perimeter Center Park

An aerial view shows the Perimeter Center business park.

SCOTTSDALE, AZ—A class-A office portfolio located within the 260-acre Perimeter Center business park consists of five buildings totaling 640,000 square feet. It is surrounded by prominent dining, shopping, entertainment and resort venues, and easily accessible by the Loop 101 Freeway in North Scottsdale. Real estate development and investment firm, Desert Troon Companies , originally developed the properties and has now completed the $122 million sale or 640,000 square feet sold of the original 800,000 square feet. Tom Knoell Jr. , director of commercial leasing for Desert Troon Companies represented the seller, Desert Troon Companies. The buyer was Wentworth Property Company LLC and Northwood Investors . Cushman & Wakefield executive managing director, Jeff Wentworth , vice president, Chris Walker , executive managing director, Mike Beall , and senior vice president Sean Spellman represented the buyers. The Cushman & Wakefield team has been retained for the leasing agents for all five buildings. With the acquisition, Wentworth becomes the largest owner of office space in North Scottsdale. Daniel Smith , CEO of Desert Troon Companies, tells GlobeSt.com: “The partial sale of the Perimeter Portfolio is one of many sales and acquisitions Desert Troon Companies is currently negotiating. We’ll continue to announce activity throughout the summer as our commercial, retail and lifestyle portfolios consistently approach $600 million and we achieve annual turnover in excess of $100 million through new communities we develop and underdeveloped opportunities we elevate.” The portfolio included Perimeter Gateway I, II, III and V and Terra Verde , according to Cushman & Wakefield. Perimeter Gateway I is a 228,147-square-foot two-story office building located at 8667-8701 E. Hartford Dr. The selling entity of Perimeter Gateway I was Perimeter Gateway I LLC . Perimeter Gateway II is a 80,040 square-foot two-story office building located at 8777 E. Hartford Dr. The selling entity of Perimeter Gateway II was DTR12 LLC . Perimeter Gateway III is a 84,237-square-foot three-story office building located at 8660 E. Hartford Dr. The selling entity of Perimeter Gateway III was DTR10A LLC . Perimeter Gateway V is a 65,848-square-foot two-story office building located at 8665 E. Hartford Dr. The selling entity of Perimeter Gateway V was Perimeter Gateway V LLC . Occupancy levels in Perimeter Gateway I, II, III and V at time of sale were 36%, 73%, 78% and 62% respectively. Terra Verde is a 180,445-square-foot three-story office building located at 16767 N. Perimeter Dr. that was 82% occupied at the time of sale. The selling entity for Terra Verde was DTR14 LLC . Wentworth will make major improvements to the Perimeter Gateway project including the addition of two parking structures that will bring the overall parking ratio for Perimeter Gateway I, II and V to 6/1,000. The company is planning to remodel the lobbies and common areas in Perimeter Gateway I, II and V, and add a café, tenant lounge and fitness center in Perimeter Gateway I that will be available for tenants of all four buildings. In addition, Wentworth plans to convert 162,000 square feet of space into new spec suites throughout the portfolio. The conversion includes two or three new spec suites in each of the five office buildings. Plans for the new spec suites will transform the vacant or shell space into creative office spaces with open ceilings and modern finishes. Wentworth plans to start the renovations and construction of the spec suites immediately. Construction of the two new parking garages is expected to start during the third quarter 2016 with estimated completion in 2017. “This portfolio offered optimal location, so with our plans to remodel common areas, add amenities and build-out spec suites we are confident that the available space in the buildings will attract considerable interest from new tenants and successfully lease up,” according to Jim Wentworth Jr. , principal with Wentworth. Desert Troon’s experience includes corporate build-to-suit, office, retail, hotel, master-planned community, and mixed-use and historic preservation projects. Notable lifestyle projects include Torreon Golf Community, Hassayampa Golf Club and Troon/Troon North Communities in Arizona , Cimarron Hills Golf and Country Club in Texas, and Red Mountain Resort in Utah. “As one of the premiere office portfolios in the state, it has been Desert Troon Companies’ privilege to manage this standout portfolio with our partners,” said Smith. “Desert Troon Companies used this strategic disposition of assets to continue its targeted value-add acquisition strategy.”