Tag Archives: capital markets

7200 West Buckeye Rd, JLL

JLL Brokers $26.25M Deal of Industrial Property

Phoenix industrial absorption rates may have hiccupped mid year, but investors are not deterred, as illustrated by the sale of 7200 W. Buckeye Rd. in southwest Phoenix. Jones Lang LaSalle’s Capital Markets experts facilitated the sale on behalf of the owner this week. 7200 West Buckeye Road Industrial Investors, LLC purchased the 400,000 SF industrial property for $26.25M.

Jones Lang LaSalle Managing Directors Mark Detmer and Bo Mills represented the buyer and the seller.

Located on Buckeye Road within minutes of Interstate 10, 7200 Buckeye Road is 100 percent leased through 2017 to national credit tenant, Home Depot U.S.A., Inc. The building was built in 2009 and includes state-of-the-art features such as 32’ clear height, ESFR sprinklers, cross dock loading, concrete truck courts and trailer storage.

“This industrial project competes toe-to-toe with the best assets in the Valley,” said Detmer. “As our industrial market continues to strengthen, this property—like so many others in Phoenix—will deliver on its upside potential through rent growth, tenant retention and steadily rising values.”

According to JLL research, industrial vacancy levels in southwest Phoenix are almost 10 percent lower than they were two years ago, with more than 10 MSF of requirements still actively touring the market for space. As of September, the firm’s quarterly Phoenix Industrial Market Report shows the southwest Phoenix warehouse/distribution inventory at 15.6 percent total vacancy and average total asking rents of $0.92 per-square-foot. This compares to an overall Valley warehouse/distribution vacancy rate of 12.7 percent and average asking rents of $0.43 per-square-foot.

Joseph Compagno

Joseph Compagno Joins CBRE Capital Markets

CBRE announced that Joseph Compagno has joined as vice president of the firm’s Capital Markets Investment Properties Group in Phoenix.

Compagno has more than eight years of experience in commercial investment sales and will lead the single-tenant, net-leased retail investment initiative.

Compagno comes to CBRE from Faris Lee Investments, where he worked as a director for more than two years. During that time, he gained extensive experience representing clients in the acquisition and disposition of shopping centers and single-tenant assets.

Prior to joining Faris Lee Investments, Compagno worked for nearly six years at the Phoenix office of Marcus and Millichap, where he quickly established himself as a market leader in the sale of retail investments throughout Arizona and across the U.S. He was named associate director of the National Retail Group in 2007 and was promoted to senior associate in 2008.

“Joe is well known throughout the marketplace for his expertise in retail investment sales,” said Craig Henig, CBRE’s senior managing director and Arizona market leader. “His skill set, deep market knowledge and client-focused service are the perfect complement to our team of best-in-class investment professionals.”

Compagno holds a bachelor’s degree in marketing from Arizona State University and is a member of the International Council of Shopping Centers (ICSC) and Urban Land Institute (ULI). He resides in Scottsdale.

 

Camelback Arboleda

Jones Lang LaSalle Completes Sale of Camelback Arboleda

The Phoenix office of Jones Lang LaSalle completed the sale of Camelback Arboleda, a 179,751 SF, multi-tenant office building located at 16th St. and Camelback Rd., in the heart of Phoenix’s Camelback Corridor.

Jones Lang LaSalle’s Senior Managing Director Dennis Desmond and Senior Vice President Brian Ackerman managed the sale to El Segundo, Calif.-based Westport Capital Partners LLC, a real estate investment firm specializing in distressed and opportunistic real estate assets.

Camelback Arboleda is currently 81% occupied by tenants including Stanley Consultants, Telesoft Corp., and a Starbucks administrative office. It is also the third large, opportunistic office building that Jones Lang LaSalle’s capital markets team has sold in suburban Phoenix since mid-2011. The sale price was reportedly more than $16M.

“All of these buildings are in very sought-after locations and provide great upside opportunity,” Desmond said. “They are the value-add combination that buyers have been waiting for.”

In addition to Camelback Arboleda, the capital markets team recently brokered the sale of Scottsdale Financial Center II— a 150,892 SF building at Indian School and Scottsdale roads that was purchased in late 2011 by Westport Capital Partners, and Scottsdale Centre — a 164,300 SF building located on Scottsdale Rd. near Indian Bend Rd. that was purchased in mid-2011 by Newport Beach, California-based MIG Real Estate.

According to Jones Lang LaSalle research, the Camelback Corridor was 87% occupied five years ago and rental rates averaged $30 per-square-foot. Today, occupancy has dropped to 69% and rental rates average approximately $24 per square foot.

“As local office occupancy levels improve, so do rental rates,” Ackerman said. “We are seeing signs of significant increased leasing activity now on the Camelback Corridor and that’s what is attracting investors.”