A midtown office tower, near Central Avenue and Thomas Road, was sold to Houston-based Riva Ridge Development from Miami-based LNR Property Corporation for $26 million, which included fees assessed by an auction company, according to Cushman & Wakefield.
The CBIZ Plaza is located at 3101 and 3111 N. Central Ave. in Phoenix, across the street from Park Central Mall. CBIZ Plaza includes a 16-story tower, a two story low rise building and a six-level parking structure.
Cushman & Wakefield Executive Managing Director Eric Wichterman and Senior Director Mike Coover negotiated the sale. The 266,231-square-foot office property and was 78% occupied at the time of the sale.
Houston-based Boxer Property purchased the building on behalf of Riva Ridge development, and Boxer Property took over leasing and management duties for LNR Partners in 2015.
Brad Nichol, director of acquisitions, managed the deal on behalf of Boxer Property which was purchased through the Ten-X auction platform from the seller, LNR Partners LLC.
Over the last year, Boxer implemented its signature, amenity-rich Workstyle executive suites to bring energy and style to the building lobby, which were completed last year. The suites, totaling 6,084 square feet, are part of a nationwide initiative by Boxer Property to cater to the growing number of entrepreneurs, startups and small businesses popping up in and around major cities, especially Midtown and Downtown Phoenix.
The project, totaling approximately $212,000, added 18 offices that offer freelancers, entrepreneurs and startups the opportunity to lease Phoenix office space at a fraction of the price of traditional office space.
Boxer plans to continue to improve the property with exterior tenant space in the breezeway and is in conversations with restaurant and retail operators to bring tenant amenities to the ground floor.
Stephen Kradjian is the asset manager for the owner and in charge of Boxer’s Third Party Services.
“We were quickly able to add value to the building for LNR which allowed them to achieve a significantly higher price on the property than the previous two marketing efforts. With new ownership and an injection of capital we will be able to add value to the property and respond quickly to the brokerage community.”
Built in 1980, a key advantage of CBIZ Plaza is its prime location within Phoenix’s Central Corridor along the Valley Metro Light Rail. The building offers convenient access to Downtown Phoenix and major freeways including Interstates 10 and 17. The office complex is also located near the Sky Harbor International Airport, which is a 15 minute drive away. The Central Corridor has seen a resurgence in recent years with new restaurants, multifamily development and increased office demand.