Liberty Property Trust is executing a national strategy of divesting from its office assets to focus on industrial. The firm has sold its final five office assets in the Greater Phoenix market, which total 806,000 square feet, for $255 million at the perfect time. The Phoenix office market is on an upswing—seeing tremendous activity this year—making it a great time for Liberty Property Trust to capitalize on the portfolio and for new institutions to get a quality portfolio in the market.

“This was a perfect time to harvest the asset as well given the strength of the capital markets on the West Coast,” Barry Gabel, EVP at CBRE, tells GlobeSt.com. “There is a tremendous amount of capital looking for this type of opportunity in that the credit worthiness of the tenancy is investment grade as is the quality and location of the portfolio. Phoenix is a market with a great amount of runway left, and as such, capital is looking at Phoenix in the long-term and believing in Phoenix. Our economy has changed significantly and it is much more diverse than ever before, and Phoenix is looked at as a great way to get a great yield at a great price with a great future.”

The portfolio consisted of four properties in Tempe—the four-property Liberty Center at Rio Salado, a 682,406-square-foot office campus—and in Scottsdale, a three-story 123,340-square-foot office campus at 8501 East Raintree Drive. Tempe in particular was a big draw for investors. “Tempe is our preeminent, most premier submarket across the valley,” Chris Marchildon, VP at CBRE, tells GlobeSt.com. “Four of the five properties are in Tempe, and the development proforma for this opportunity was actually a 10-year horizon, and they leased to full occupancy in three years. That is a testament to the market.”