ViaWest Group has sold two premier class A office buildings in the Phoenix metro area for a total consideration of $11.1 million.
CBRE negotiated the sale to Melcor Development of the 24,150-square-foot Perimeter Parkview Corporate Center at 8355 E. Hartford Drive, Scottsdale, and the 35,066-square-foot Chauncey Professional Center located at 6930 E. Chauncey Lane in Phoenix for a combined 59,220-square-foot investment. The buildings commanded sale prices of approximately $4.1 million and $7 million, respectively.
Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, ViaWest Group of Phoenix. The buyer, Canada-based Melcor Developments Arizona Inc., was represented by Tom Swan with Amcal Southwest.
ViaWest originally acquired the properties in two separate transactions. The Chauncey property was purchased in December 2006 in shell condition, and ViaWest was able to lease up the property from 0 percent in late 2007 to 100 percent by mid-2009, during a very difficult leasing period. This was done through building spec suites of varying sizes, creative marketing approaches and unique lease structures, according to ViaWest.
The Perimeter Parkway property was bought at a trustee sale in January 2011, with a portion of the property leased and the balance in shell condition. Within one year of purchase, the property was 100 percent leased.
Both Chauncey Professional Center and Perimeter Parkview are presently 90 percent leased, with one suite in each property becoming available within the last month. Those suites total 3,708 square feet and 2,486 square feet, respectively.
“These two assets are excellent properties that are of great quality and extremely well located. Melcor should have much success with them,” said Steven Schwarz of ViaWest Group. “As a local value-add operator, we will continue to redeploy capital into our strategies that generate opportunistic-type returns.”
The sale marks Melcor Developments Arizona Inc.’s entrance into the Arizona market, and ViaWest has been retained to continue management of both properties, keeping its management portfolio in excess of 1.5 million square feet.
“The North Scottsdale/Airpark area has consistently outperformed the overall Phoenix market in net absorption of office space and is one of the top job-creating economies in the U.S.,” said CBRE’s Gabel. “In addition, these properties are both surrounded by first-class amenities, high-end executive housing and the Loop 101 Freeway, making them very attractive to both current and prospective tenants, and solid investments for the buyer.”
Built in 2007, Perimeter Parkview Corporate Center is a two-story, multitenant office building situated in the Scottsdale Airpark submarket.
The property has a high-quality tenant roll that includes Arizona State University’s W. P. Carey Graduate MBA Program, Interior Motives, Titus Brueckner & Levine PLC, BIC Distributors and Pro Sports Management. The property is at the base of the McDowell Mountains, in the 260-acre Perimeter Center Business Park.
The business park is adjacent to the TPC Stadium as well as numerous residential and golf communities, resort hotels and an abundance of exciting dining and retail options.
Chauncey Professional Center, which was built in 2006, is in the North Scottsdale Corporate Center master-planned commercial development. Tenants include Aspen Systems, Troche Fertility Clinic, Marcum Media, AZ Tech Finders, Nobis Technology Group, Landmark Management Group, MiCamp Solutions, Bottle & McInerney, Cadron Financial and Pogson Asset Management.
Chauncey Professional Center is surrounded by first-class amenities, including the 580,000-square-foot Scottsdale 101 retail center, the 200,000-square-foot Whole Foods-anchored Shops at Chauncey Ranch, the 465,000-square-foot Chauncey Ranch Autoplex, and a 110,000-square-foot Lifetime Fitness. The property also benefits from proximity to high-end executive housing and the Loop 101.
CBRE Group Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The company has approximately 37,000 employees and more than 300 offices, including one in Phoenix. More: www.cbre.com.
ViaWest Group is a Phoenix-based real estate investment firm focused on acquiring value-add, opportunistic and special-situation commercial real estate in the Southwest. In the last 12 months alone, ViaWest has purchased more than $100 million of properties in the Phoenix area and is actively looking for new opportunities. More: Steven Schwarz, 602-957-8300; www.viawestgroup.com.
Largest Commercial/Runway Parcel in Scottsdale Airpark Sells
Scottsdale Airpark’s largest commercial land parcel on the runway, at 9.54 acres, sold to a local investment company in late April for $8.3 million, or $20 per square foot.
The 415,560-square-foot parcel was the largest remaining commercial parcel with runway access for sale in the Airpark. This sought-after parcel on the south side of the Scottsdale Airport runway holds strong investment potential for future aviation and various commercial uses, according to a statement from Lee & Associates.
Mark Linsalata, Bill Blake and Fred Darche, principals with Lee & Associates, represented the seller, Phoenix Dragon FEI of Scottsdale. Linsalata represented the buyer, Boeing V, a private investment entity in Phoenix.
Lee & Associates Arizona specializes in providing commercial brokerage services to the industrial, office, land and investment sectors of the Phoenix commercial real estate market. The Phoenix office was established in 1991. Each of the 49 nationwide Lee & Associates offices has a strong local ownership combined with a powerful platform from the national Lee & Associates network. More: Mark Linsalata, 602-912-3539; mlinsalata@leearizona.