Tag Archives: Jim fijan

Biltmore Financial Center, Courtesy of CBRE

ViaWest buys Biltmore Financial Center for $163M

ViaWest Group recently purchased the Biltmore Financial Center, three Class A office buildings totaling approximately 635,000 square feet at the northwest corner of 24th Street and Camelback in Phoenix, for $163.1 million (or $257 per square foot).

The transaction is the largest multi-tenant office sale in the Phoenix area since 2007 and third largest sale ever in the metropolitan area, according to CoStar’s records.

ViaWest Group of Phoenix, with partner AllianceBernstein U.S. Real Estate Partners II, L.P. of New York, purchased the Biltmore Financial Center from Invesco Real Estate.

The buyer was self-represented in the transaction. Jim Fijan and Will Mast of CBRE represented the seller.

“The sale is a good barometer for the market overall. The sale process was very competitive. We received north of 150 confidentiality agreements, which is a good indication that Phoenix is back as a favorite for all types of capital looking to invest in real estate,” said CBRE’s Fijan. “Leasing fundamentals are still improving in Phoenix, but we are already seeing near pre-recession sale prices. I think this confirms confidence in the market. The metro Phoenix office market still has quite a bit of runway and as leasing activity continues to improve investors will see significant revenue growth.”

The three buildings comprising Biltmore Financial Center are located on the northwest corner of the most prestigious section of the Camelback Corridor:

·      4-story Biltmore Financial Center I (2390 E. Camelback Road)

·      11-story Biltmore Financial Center II (aka Northern Trust Tower, 2398 E. Camelback Road)

·      6-story Biltmore Financial Center III (2394 E. Camelback Road)

Major tenants include Fennemore Craig, Colliers International and Northern Trust. The institutional-quality buildings are Energy Star rated and LEED certified. The property has premier access, extremely convenient parking and some of the best views in Metro Phoenix. As well, it includes a two-acre park, an onsite gym, and a deli with many additional amenities directly across the street at the Biltmore Fashion Park.

“This property has it all; location, views, access, parking and a premier tenant base,” said Steven Schwarz, a Founding Partner of ViaWest Group. Gary Linhart, also a Founding Partner of ViaWest Group added, “We are very excited with our plan to activate the common areas, modernize the amenities, and utilize our proactive management style to position Biltmore Financial Center to its rightful place as the premier asset on the Camelback Corridor.”

Jerry Roberts, Corey Hawley and Pat Boyle with CBRE are representing ViaWest Group in leasing the property.

ViaWest Group has been one of the most active buyers in the Phoenix area in 2015. In addition to the acquisition of five industrial properties, an office building, and a land parcel so far this year, ViaWest Group recently completed a major renovation of Nexus, a 120,000-square-foot office property at the ASU Research Park.

The Biltmore Financial Center acquisition is ViaWest Group’s largest purchase to date. ViaWest Group plans to move its office from 40th Street and Camelback to the Biltmore Financial Center this fall and serve as the property manager and asset manager.

According to CBRE Research, which conducts an annual Investor Intentions Survey, current investment trends point to supply and demand issues in core, coastal markets like San Francisco, Los Angeles and Seattle. This makes more inland markets like Phoenix increasingly attractive.

Fijan continued, “There was a 17 percent rise in real estate investment volume across the U.S. in 2014, which has translated to rising asset prices and a tightening supply, especially in coastal markets. Metropolitan Phoenix is still relatively well priced and there are still plenty of opportunities.”

Esplanade

CBRE completes sale of Esplanade III

CBRE has negotiated the sale of Esplanade III, a 218,266-square-foot office building located at 2415 East Camelback Road in Phoenix. Financial terms of the transaction were not disclosed. The property was approximately 95 percent leased at time of sale.

Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the sale, along with Kevin Shannon of CBRE’s South Bay, California office. The seller was an institutional client of AEW Capital Management, L.P. The buyer was Dallas-based Crow Holdings.

“This is the highest price per square foot for a multi-tenant, class A asset since the downturn,” said CBRE’s Fijan. “Office fundamentals are improving and pricing is approaching pre-recession levels. Investors are taking notice and have shifted their attention to Phoenix, especially as pricing in coastal markets skyrockets.”

As part of the Esplanade mixed use development, Esplanade III benefits from the wealth of on-site amenities shared by the complex. MetLife, owner of the other four office buildings in the development, recently announced a refresh of the retail amenities such as new restaurants and a new common area business center. 

Developed in 1997, Esplanade III is a ten-story, class A, multi-tenant office building located in the heart of the Camelback Corridor. Ninety-five percent leased at time of sale, tenants include CBRE, Alliance Residential, Regus, Helios and Major League Baseball’s western headquarters, among others.

Kierland II

Kierland II sells for nearly $50M

CBRE has negotiated the sale of Kierland II located at 16260 N 71st Street in Scottsdale, Ariz. The 237,875-square-foot office building commanded a sale price of $49.15 million. The property was approximately 80 percent leased at time of sale.

Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the transaction. The seller was The Prudential Insurance Company of America. The buyer was Irvine, Calif.-based LBA Realty, a full service real estate investment and management company.

“The sale of Kierland II is a great way to kick off 2015 and this sets the tone for what should be a good year for the office investment market,” said CBRE’s Fijan. “We expect the office market to be very active throughout 2015. The past few quarters have seen steady market improvement and buyers and sellers alike are looking to capitalize on the improved fundamentals the Phoenix office market is demonstrating.”

Developed in 2001, the four-story, class A, multi-tenant office building is currently home to Prudential, Brookfield Relocation Services and 41st Parameter. Located in the heart of North Scottsdale, the property benefits from proximity to world class retail amenities, restaurants and resorts as well as direct access to the Loop 101 Freeway via Scottsdale Road. Tenant’s amenities include ample covered parking as well as a new on-site full service restaurant.

Economic Forecast

IREM, CCIM announce 9th annual CRE Economic Forecast

IREM and CCIM will present the 9th annual commercial real estate Economic Forecast at the Tempe Center of the Performing Arts on Thursday, Jan. 15, 2015. IREM and CCIM will begin the program by honoring Jerry Colangelo, who will be recognized as the Person of the Year by the organizations.

The panel discussion will be moderated by Peter Bolton of Newmark, Grubb, Knight, Frank. Each panel member will discuss their area of expertise as it relates to the current commercial real estate environment and then predict, based on the metrics of the commercial real estate business, achievements by year’s end.

The program will begin at 8 a.m. and continue until noon. The program will include;
Jerry Colangelo Program Honor

Multi-Family Panel
o    Cindy Cooke – Colliers International
o    Mark Schilling – MEB
o    Tom Lewis – Alliance

Office Panel
o    Jim Fijan – CBRE
o    Chris Toci – Cushman & Wakefield
o    Matt Mooney – Parkway Properties

Retail Panel
o    Judi Butterworth – Velocity Retail
o    Greg Laing – Phoenix Commercial Advisors
o    Pat McGinley – Vestar

Industrial Panel
o    Stein Koss – Lee & Associates
o    Tony Lydon – JLL
o    Mark Singerman – Rockefeller Group

The Tempe Center of the Arts is located at 700 W Rio Salado Parkway, Tempe, Ariz., and more information on the 2015 IREM/CCIM Economic forecast can be found here.

Hayden Ferry Lakeside II Office Tower

CBRE Completes $86 Million Sale of Hayden Ferry Lakeside II Office Tower

The Fortune 500 and S&P 500 company, CBRE, has completed its $86 million sale of the Hayden Ferry Lakeside II property.

The property is located at 60 E. Rio Salado parkway in Tempe. The seller remains undisclosed and was represented by CBRE’s Brad Anderson and Bryan Taute, along with Kevin Shannon, Todd Tydlaska and Ken White from the firm’s California office.

CBRE’s Jim Fijan, of Phoenix, represented the buyer, who also owns the adjacent Hayden Ferry Lakeside I and is an affiliate of Parkway Properties.

The Hayden Ferry Lakeside II is a 12-story Class A multi-tenant office building and is located within a 1.6 million square feet project. This project includes offices, retail and residential condominium units. The building, built in 2007, was 95% occupied at the time of sale.

The location of the building creates for a vibrant environment for tenants, as it is set along Tempe Town Lake, and is surrounded by countless dinning and shopping venues on the Mill Avenue entertainment district.

“The Phoenix office leasing market has turned and is gaining momentum. It was one of only eight office markets nationally that absorbed over 1.8 million square feet in 2011, with much of that absorption focused in Class A office assets like Hayden Ferry Lakeside. This transaction again demonstrated capital’s continued desire for core office product.” said CBRE’s Shannon.

Taute added, “The significant lease up over the last 18 months and subsequent sale is a testament to the quality of the building. We anticipate leasing demand for this project to continue for the foreseeable future.”

For more information on the largest commercial real estate services firm (in terms of 2011 revenue), visit their website at www.cbre.com.

The company, with nearly, 34,000 employees, provides services for real estate owners, investors, and occupiers.