Buchanan Street Partners, a Newport Beach-based real estate investor, has acquired Stapley Corporate Center, a two-building, Class A office property located at 1840 and 1910 South Stapley Drive in Mesa, Arizona. The acquisition reflects Buchanan Street’s continued investment strategy in the Phoenix area, a market where the firm has been an active buyer of commercial and multifamily assets.
Stapley Corporate Center was purchased for $32.5 million from The DESCO Group, Inc., the original developer that built and has managed the property since 2007. The 180,000-square-foot property is 90 percent occupied with long-term leases in place, including tenants Cigna Healthcare and Wells Fargo.
Chris Toci and Chad Little of Cushman & Wakefield of Arizona represented the seller in the transaction, while Buchanan Street represented itself. Mark Gustin of Jones Lang LaSalle will handle leasing for the property.
“This property will continue to attract top tenants seeking high-image office space in the East Valley, based both upon the quality of the building and the continued Phoenix recovery,” said Brian Payne, Vice President of Buchanan Street Partners. “The project benefits from a location adjacent to executive housing in Gilbert and is in close proximity to more than 2 million square feet of retail services in the immediate area.”
Stapley Corporate Center has immediate access to Highway 60 and is near the border between Mesa and Gilbert, a city with the second highest household income in the Phoenix area and the highest concentration of graduate and professional degrees among western U.S. cities.
The investment is part of Buchanan Street’s continued value-add investment strategy in the Phoenix area, a market where the investor now owns 1.4 million square feet of properties. Buchanan Street acquired two Phoenix area properties earlier this year, including Mesa Corporate Center, a 106,077-square-foot Class A office building in Mesa, and Vue Park West, a 260-unit luxury apartment community in Peoria, Arizona.
In addition to investing in the Phoenix area, Buchanan Street has targeted Southern California, Houston, Texas, the San Francisco Bay Area and Denver, Colorado for acquisitions. The firm has recently added six new hires as it expands its growing investment and lending businesses.