The Phoenix office of JLL has just closed a $10.5M ($164.67/sf), three-building flex office portfolio sale in McDowell Mountain Business Park, a segment of metro Phoenix that for years has sustained a sub 10-percent vacancy rate for its class-A flex office and industrial space.
“This is a niche area of the northwest Valley that appeals to tenants looking for superior office, flex or industrial space,” said JLL Senior Vice President Brian Ackerman, who represented property seller Aegis I, LLC in the portfolio sale. “It’s less than one mile from two Loop 101 freeway interchanges and only a few miles from the Scottsdale Airport, McDowell Mountains and some of the Valley’s most elite executive housing, retail and dining. The location, combined with the quality construction of these three buildings, will definitely stand the test of time.”
The three-building sale totals 63,763 square feet of institutional-grade flex office space at 9171 E. Bell Road, 9181 E. Bell Road and 16611 N. 91st Street in Scottsdale – at the southeast corner of Bell Road and 91st Street, just off of the Loop 101 freeway. All three buildings feature modern architecture, high ceilings and roll-up doors to accommodate high-profile retail showroom businesses and office users.
The portfolio sits within the McDowell Mountain Business Park, which totals more than 2.2 million square feet of office, flex and industrial space designed for tenants needing quality space in a premier Scottsdale Airpark location.
According to JLL, the combined vacancy rate for the park’s 50 buildings has remained at sub-10 percent throughout the recession. That rate is even lower today, now at a combined 5.2 percent vacancy. At the same time, rental rates in McDowell Mountain Business Park have continued to increase, with many buildings now hitting $1.00 per-square-foot NNN and higher for quality class-A product.
The portfolio buyer, California-based Crown Realty and Development, represented itself in this sale. Michelle Gardner with Shell Commercial will continue to maintain the buildings’ leasing assignment.
