DTZ, a global leader in commercial real estate services, announced that Investors Warranty of America, Inc., a subsidiary of AEGON USA, has sold Security Title Plaza, 3636 N. Central Avenue in Phoenix. Heckethorn Towers, LLC, a unit of Reven Capital of La Jolla, CA, purchased the 219,032 square foot, 12-story office tower for $18 million.
DTZ’s Bob Buckley, Tracy Cartledge and Steve Lindley and Ben Geelan with the Capital Markets Group and Mark Stratz, Mike Beall, Scott Baumgarten and Chris Walker with the Office Group represented Investors Warranty of America, Inc. during the transaction.
“The buyer was president of the company that sold Security Title Plaza for $38 million in 2007,” said Mr. Buckley, DTZ Senior Managing Director. “It was a unique opportunity to buy the same building at less than 50% of its peak sales price. With all of the positive developments in Phoenix’s urban core since 2007, the strong potential for this asset to return to peak pricing in the future is significant, providing exceptional upside potential to the buyer.”
Built in 1983, Security Title Plaza is located on ±4.2 acres at the southwest corner of Central and Weldon Avenues in Phoenix’s Midtown submarket. It is close to amenities including neighboring Park Central Mall and within a short walk to a METRO Light Rail station. The office tower has a distinctive atrium lobby with a fountain and glass sculpture and an on-site café. The building has a five-story parking structure with additional visitor parking, ±18,000 square foot efficient floor plates and expansive balconies in the tenant spaces overlooking Central Avenue and Phoenix. Security Title Plaza was 52.6% occupied at the time of sale.
“We are continuing to see interest from buyers, developers and tenants along Central Avenue, especially in the Midtown and Uptown areas,” said Mr. Lindley, DTZ Senior Managing Director. “The proximity to amenities, access to the METRO Light Rail and the growth with new residential and retail development are all attracting capital and tenants to this improving urban core.”