Tag Archives: ViaWest

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.”

Crossroads of Tempe

97KSF office at Crossroads of Tempe sells for $17.25M

ViaWest Group has sold 96,691 SF of office space within the commercial complex, Crossroads of Tempe. Phoenix-based ViaWest Group acquired the nearly vacant office-retail property in 2011 for $4.055 and sold the retail portion shortly after for $1.3M. Four years later, after investing in the two remaining vacant, shell condition office buildings, ViaWest Group (in a joint venture with Southwest Value Partners) has sold the project for $17.25M. The buyer was Los Angeles, CA-based Held Properties, Inc, represented by Chris Toci and Chad Littell of Cushman & Wakefield of Arizona Inc. in Phoenix and Mark Gustin, Karsten Petersen and Dave Seeger of Jones Lang LaSalle in Phoenix. Located at 303 & 309 W. Elliot Road on the northwest corner of Elliot Road and Kyrene Road in Tempe, the property is now 96 percent occupied.

“The new buyer of this project recognized the strength of the tenants, the quality of the property and the prime location for technology-based and other companies. This project is indicative of the vision and efforts of our team. We purchased an asset that was completely vacant during a very difficult period and negotiated for additional parking, built-out high end space, and positioned the buildings perfectly for tenants in the market,” says Steven Schwarz, co-founder at ViaWest Group.

“Crossroads of Tempe is located in the epicenter of metro Phoenix’s high-growth technology
trade area, the Southeast Valley, and is directly linked to the surrounding supply chain,” said
Chris Toci. “At 96 percent occupancy, the Property is leased to a mix of technology-focused tenants, each integrally connected to their nearby technology based clients.”

Tech companies have been relocating to the Southeast Valley in large numbers in order to compete for the local talent that comprises the region’s most well-educated labor pool. Numerous household names have settled in the Southeast Valley including Go Daddy, AVNET, Qualcomm, Iridium Satellite, Intel, Motorola, Honeywell, Xerox, Microsoft, Bank of America, Wells Fargo, eBay/PayPal, and AT&T.

“The property also offers immediate access to local executive housing and high-end demographics with median household incomes of more than $100,000 per year” said Chad Littell. High paying employment opportunities in technology-based fields are luring skilled workers to the area to avoid the congested commutes into Phoenix and Scottsdale.

Crossroads of Tempe meets the needs of the Southeast Valley workforce through its high-end design, on-site amenities, abundant parking, prominent identity, and convenient tenant access. The property has emerged as the ideal open office solution in a submarket currently short on
options.

Mark Gustin, Karsten Petersen and Dave Seeger of JLL will serve as the leasing brokers on the property and ViaWest Group will continue to serve as the property manager.

San Tan Tech Center, Courtesy of ViaWest

Arvato Digital Services moves to San Tan Tech Center

ViaWest Group announced today that Arvato Digital Services, LLC, a subsidiary of the multi-billion dollar global media and services company Bertelsmann, has signed a six-year lease for 33,048 SF of office space at San Tan Tech Center.  The ±129,187 SF property is located at 145 S. 79th Street in Chandler and is also home to the City of Chandler Innovations Center.  ViaWest Group purchased the property in 2014 and have performed extensive exterior and interior renovations to enhance the well-located building formerly occupied by Intel.

“ViaWest is excited to welcome Arvato to their first location in Arizona.  It was a pleasure working with members of Arvato’s team and the City of Chandler to consummate this transaction.  We look forward to a great partnership with Arvato for many years to come.  Attracting companies of this caliber serve to validate the quality and functionality of the property and outstanding Chandler location,” said Danny Swancey of ViaWest Group.

San Tan Tech Center is located south of the southwest corner of Chandler Boulevard and McClintock Drive, in one of the fastest growing urban centers and high-technology manufacturing cities in the west. The project is centrally located between the I-10, Loop 101 and new Loop 202 Freeways and is in close proximity to several million square feet of retail and restaurant amenities including Chandler Fashion Center.  The building is also home to the City of Chandler’s Science & Technology Incubator.  Chandler Innovations has been a great source of attracting new and established technology-related companies to Chandler and serves as a great competitive advantage for the city and surrounding region.

“The Chandler area has consistently outperformed the overall Phoenix market in attracting technology-related companies and is one of the top job-creating economies in the U.S.,” said Scott Baumgarten, Vice President with DTZ Office Group.  “When Arvato was looking for office space, San Tan Tech Center provided them a great location, efficient design, and abundant parking.   ViaWest’s thoughtful renovations and contemporary spec suite design allowed Arvato to visualize a finished product and provided a move-in ready space to accommodate their more immediate need for a hiring/training center,” DTZ’s Baumgarten added.

“We are pleased to welcome a company such as Arvato Digital Services to the region, an outstanding international business outsourcing company who has chosen to locate their latest operations center in the city of Chandler,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council.  “The financial services industry is one of the fastest growing industries in Greater Phoenix, and Arvato recognized the advantages of the deep talent base in this market to accelerate their future growth.”

“This is excellent news for the community as we continue to diversify an already robust employment base, particularly in west Chandler,” Mayor Jay Tibshraeny said.  “Arvato is a welcomed addition to the San Tan Tech Center, and I look forward to watching them grow and prosper for many years to come.”

Scott Baumgarten with DTZ represented the landlord. DTZ is currently marketing the remaining divisible vacancy consisting of 32,696 SF.  Sam Pruitt of Site Selection Group and Brian Black with Heiple & Associates represented the tenant.

Riverside Industrial

ViaWest purchases fourth Southwest industrial property

ViaWest Group announced a new addition to its expanding portfolio, with the recent successful acquisition of the 72,129 SF multi-tenant industrial building located at 77 N. 45th Ave. in the heart of southwest Phoenix. Phoenix-based ViaWest Group paid $3.07M on the acquisition.

This is the fourth acquisition in ViaWest’s new fund focused on the purchase of industrial assets in the Southwest U.S. The three other assets closed in January this year. The seller was El Segundo, California-based Cordia Capital Managment, LLC, represented by Will Strong, Mike Haenel, Andy Markham and Phil Haenel with DTZ’s Phoenix office.

Riverside Industrial is located in a prime location near the southeast corner of Van Buren Street and 45th Avenue, just south of a full diamond interchange at the I-10 Freeway with immediate access to the two major exits, 43rd Avenue and 51st Avenue. Currently 100% leased, the subject is situated within one of the largest industrial submarkets in Phoenix. Will Strong, Mike Haenel, Andy Markham and Phil Haenel at DTZ will continue leasing the property on behalf of ViaWest.

“This property is a great fit as the fourth investment in our new fund, which is focused on acquisitions of well-located general industrial properties, in recovering secondary markets in the Southwestern U.S., at significant discounts to replacement cost”, says Gary Linhart, Co-Founder of ViaWest Group.

Will Strong of DTZ expressed, “This property is uniquely positioned to cater to small and medium size users that want a prime, infill location that provides generous coverage ratio and functional loading at competitive rental rates.”

“We are excited to purchase the Riverside Industrial building considering its prime infill location with great proximity to the diamond interchange at the I-10 Freeway. It has been and will continue to be well-managed, and is a great complement to our neighboring 103KSF industrial building on 49th Avenue and Van Buren Street, Tiger Industrial. With these two assets, we are gaining a nice position on multi-tenant industrial in the most desirable industrial location in the heart of southwest Phoenix”, says Steven Schwarz, Co-Founder of ViaWest Group.
ViaWest Group intends to hold the property for investment and will serve as the property manager and asset manager.

Cemex Aerial

ViaWest acquires 9 acres of industrial land in Deer Valley

ViaWest Group is received a new addition to its expanding portfolio, with the recent successful acquisition of the ±9.02 acres of land in Deer Valley. The property is located at the NEC of Central and Pinnacle Peak Rd. at 50 & 100 E. Pinnacle Peak Rd. in Phoenix, AZ. Zoned A-1, the land is currently leased to Cemex, a global building materials company that provides high-quality products and service to more than 50 countries throughout the world. ViaWest Group paid $3.25MM on the 9.02 acre acquisition.

The seller was Luke Land 80, LLC, represented by Luke Lewis of Luke Land Realty. ViaWest Group was represented by John Pompay and Gary Anderson at DTZ.

“We are very excited about the opportunity to have a strategic land location in Deer Valley. We value Cemex’s operations and hope they stay for many years, but, if not, it is an excellent development site for a future industrial project. This site is very complementary geographically to our land holdings for future development in the Southwest Valley, Central Phoenix and the Southeast Valley”, says Steven Schwarz, Principal at ViaWest Group.

ViaWest Group intends to hold the property for investment and will serve as the property manager and asset manager.

Phoenix firm buys El Paso industrial portfolio

CBRE announced the sale of a four-building, 245,745-square-foot industrial portfolio in El Paso, Texas, on behalf of New York-based Sullivan Crosby Trust. Phoenix, Arizona-based ViaWest Group purchased the portfolio in an off-market transaction for an undisclosed price.

Christian Perez GieseWilliam CaparisAnthony Mash and Arturo De la Mora, with CBRE’s El Paso office, represented the seller.

The buildings are approximately 50 percent occupied—short-term tenants bring it to 75 percent occupancy. They are located south of Interstate Highway 10 in the central El Paso submarket. According to CBRE Research, the central El Paso submarket is approximately 94.7 percent occupied as of Q4 2014.

“We are very excited about our first purchase in El Paso. This acquisition is part of the ViaWest Southwest Fund and is our first purchase outside of Phoenix with the Fund. We are hopeful that this is the first of many as we expand further into El Paso, Salt Lake City, Las Vegas, and some other southwestern cities. This property fits all the attributes that we are looking for: a solid, infill location; excellent clear height and truck court; the ability to add value immediately; and a great brokerage team with the CBRE guys,” said Steven Schwarz, Principal at ViaWest Group.

“The portfolio is made up of good, quality assets. Once a few deferred maintenance items are addressed, these assets will be highly competitive,” said Mr. Perez Giese, Senior Vice President and Director of CBRE’s El Paso/Ciudad Juarez office.

This is the first El Paso-area acquisition for ViaWest Group. A host of rehabilitation projects are slated for the properties, including new roofs, landscaping, fencing, equipment replacement and more.

ViaWest has selected CBRE to lease and manage the properties. Mr. De la Mora will lead the leasing assignment.

West 101 Business Center

ITT Technical Institute signs 5-year lease

ViaWest Group announced it recently signed a five-year lease renewal for approximately 18KSF with ITT Technical Institute at West 101 Business Center. The project, referred to as West 101 Business Center, is comprised of three Class-A office buildings totaling 118,853 SF and with this transaction and other recent activity the property is now 88 percent leased. Located just one block north of 95th Avenue and McDowell Road, West 101 Business Center is a conveniently positioned just minutes from the intersection of I-10 and Loop 101.

“ViaWest is excited to continue our long-term relationship with ITT. They have been a great tenant at the property and we look forward to working with them for many years to come,” said Danny Swancey, of the ViaWest Group.

ITT Technical Institute has over 130 locations in 38 states across the U.S. ITT currently has four campuses throughout Arizona serving thousands of students annually. “ITT was pleased to continue their lease at the building. The great West Valley location combined with the top-notch facilities were two very important factors in ITT’s decision. These characteristics, along with the great relationship between ViaWest and ITT, made the process easy,” said Andrew Cheney at Lee & Associates.

Tyler Smith at Colliers International is the leasing broker for West 101 Business Center and continues to market the remaining 14,000 SF of vacancy. Andrew Cheney of Lee & Associates represented the tenant.

ViaWest acquires ConneXion asset at ASU Research Park

ViaWest Group announced the acquisition of a 49,464 SF multi-tenant office building located at 7855 S. River Parkway, Tempe in the ASU Research Park. ConneXion (previously referred to as Transamerica Research Center) is one of the only multi-tenant buildings located in ASURP. Phoenix-based ViaWest Group paid $5.25MM on the acquisition. This is the second acquisition in ViaWest’s portfolio that is located in ASURP. The seller was Cedar Rapids, Iowa-based AEGON USA, represented by Glenn Smigiel, Bob Young, Steve Brabant and Rick Abraham with CBRE’s Phoenix office, along with Andrew Cheney and Craig Coppola with Lee & Associates.

“We are excited to purchase the Connexion building considering it is the only true multi-tenant building in ASU Research Park. It has great proximity to the 101, enjoyable lakefront views, and is a great complement to our 120K sf large-user building presently under renovation in the park. With these two assets, we have space available in one of the most desirable parks in the metro area for tenants ranging from 1,000 to 120,000 s.f.”, says Steven Schwarz, Founding Principal at ViaWest Group.

“ConneXion is a unique investment that allowed the buyer to acquire a well-located, stable asset at a price that is substantially below replacement cost,” said CBRE’s Smigiel. “Additionally, ASU Research Park’s position as a premier tech-hub in metro Phoenix ensures the property will continue to attract tenants going forward.”

ConneXion is located within ASU Research Park and the property benefits from being one of the only multi-tenant buildings within the 320-acre park. The building offers smaller tenants the rare opportunity to cluster with larger regional/corporate HQ tenants which make up the bulk of the tenancy for ASU Research Park.

ASU Research Park is home to numerous corporate headquarters and R&D facilities providing a corporate and technology hub for southeast Phoenix. The park is currently home to approximately 50 companies, including ASML’s North American headquarters, Avnet’s worldwide headquarters for their Technology Solutions Division, Edward Jones and Walgreens both have regional headquarters in the park and Iridium Satellite and North Central Association also have corporate headquarters located in the park. ViaWest Group intends to hold the property for investment and will serve as the property manager and asset manager.

Sky Harbor warehouses sell for $6.3M

ViaWest Group is pleased to announce a new addition to its expanding portfolio, with the recent successful acquisition of the two multi-tenant industrial buildings located at 2950 E. Broadway Road, Phoenix, AZ.. The two buildings, 50,256 SF and 44,838 SF, are part of Broadway Crossing industrial park. The fully leased multi- tenant structures, which sit on 6.47 acres, were built in 2000. Phoenix-based ViaWest Group paid $6.302+M ($66.28 per foot) on the acquisition. The seller was CNA Enterprises of Los Angeles, a real estate investment and advisory firm. Lee & Associates Principal Matt McDougall brokered the transaction.

The buildings are fully leased and were sold on a 7% cap rate with a close date of January 30th. The property is located just south of Phoenix Sky Harbor International Airport in the very active Airport submarket.

ViaWest acquired the buildings through a fund it is managing that is expected to buy $75 million to $100 million worth of industrial buildings in the Southwest U.S. ViaWest industrial fund is interested in buying projects from 75,000 SF to 250,000 SF. In addition to the industrial property fund, ViaWest is looking for office and multi-family assests and land parcels that are ready for development.

123RF.com, Copyright: valeriylebedev

ViaWest Group expands business with TWR Company

Tom Richards

Tom Richards

ViaWest Group announced the expansion of its company through an affiliation with TWR Company, which is operated by Tom Richards. ViaWest has been one of the fastest growing real estate investment companies in the Valley over the last few years with more than $200M of acquisitions. TWR Company is a boutique, commercial real estate, investment company headquartered in Phoenix with 14 years of experience in retail property development and value-add acquisitions. TWR Company specializes in build-to-suits and redevelopment for retail product and has a complementary skill set with ViaWest in ground-up development, in redevelopment/repositioning of existing properties, and with a flexible and adaptable structure that maximizes returns and reduces costs to its clients.

Tom Richards has extensive knowledge in REO’s, short sales, foreclosures, loan pools, and value-add real estate. Most recently Mr. Richards was a broker for two years at Voit Real Estate Services’ Phoenix office, with a focus on investment sales in the retail, office and industrial markets. He received his Bachelors of Science in Real Estate from Arizona State University.

The strategic affiliation of ViaWest Group and TWR comes on the heels of a strategic affiliation between ViaWest Group and Aspire Real Estate Investments earlier this year. Aspire was recently formed by Branden Lombardi and Zach Sakas and focuses on residential land investment and development.

ViaWest has been a leader in the office and industrial sectors and active in the multifamily sector. By adding depth in retail property and residential land investment and development, ViaWest becomes the only company headquartered in Phoenix that is a leader within these various product types.

ViaWest was able to maintain profitability during the recession by forming ancillary businesses including an investment fund focused on the preferred shares of the REITs. By stabilizing its legacy portfolio of office and industrial properties to over 95% occupancy, ViaWest was then able to focus on the purchase of distressed properties with significant vacancy.

“We excel at stabilizing troubled properties by combining our entrepreneurial energy with institutional quality management, and Tom’s multi-dimensional skill-set and combination of institutional real estate and retail development experience is a perfect fit,” added Steven Schwarz, Principal of ViaWest Group.

CoStar

NXP Semiconductors leases 33KSF at Chandler Midway

The ViaWest Group announced today that NXP Semiconductors has signed a 10-year lease for 32,988 SF of office space at Chandler Midway Corporate Center, 5670 W. Chandler Blvd. Built in 2007, the project is comprised of two class-A office buildings totaling 111,800 SF. ViaWest originally purchased Chandler Midway in December 2012. At the time of the acquisition the buildings were 34 percent leased and with the addition of the NXP, the project is now 75 percent leased with deal activity that could bring the project in excess of 90 percent in the very near future.

NXP relocated to Chandler Midway from another ViaWest-owned building in the ASU Research Park. “We developed a great relationship with NXP and were excited that we were able to find an opportunity within our portfolio of assets that fit NXP’s long-term needs,” said Danny Swancey of ViaWest Group. “We pride ourselves as a relationship-oriented owner who works closely with the brokerage community and tenants to facilitate smooth and fair transactions for all parties involved,” added Gary Linhart of ViaWest Group.

Located at the northeast corner of Chandler Blvd and Gila Springs, the project is centrally located between the I-10, Loop 101 and new Loop 202 Freeways and is in close proximity to Chandler Regional Hospital. Chandler Midway is within 3 miles of 3MSF of retail amenities and 15 minutes from Sky Harbor International Airport.

We’re excited to continue our relationship with ViaWest and keep our Arizona operations in the Southeast Valley.  The talent of the workforce, quality of life, and lack of extreme weather and natural disasters are all factors that we consider when selecting sites, and Chandler has all of these key ingredients,” stated Greg Stuck, Sr. Director of Global Real Estate for NXP Semiconductors.

“The Chandler area has consistently outperformed the overall Phoenix market in attracting technology-related companies and is one of the top job-creating economies in the U.S. NXP continues this trend by bringing another a great global corporate name and quality workforce to Chandler Midway,” said Cassidy’s Scott Baumgarten. These properties are surrounded by first-class amenities, high-end executive housing and the I-10, Loop 101 & 202 Freeways making them very attractive to prospective tenants. Mark Stratz added, “NXP’s move to Chandler Midway solidifies their commitment to Arizona and further ratifies the Southeast Valley as one of the nation’s premier technology corridors.”

Vice Presidents Stratz and Baumgarten of Cassidy Turley’s Phoenix office represented the landlord and are currently marketing the remaining vacancy consisting of 23,117 SF in the 5670 building, as well as, a state-of-the-art 5,066 SF spec suite prominently located on the first floor lobby of the 5710 building. Don Rodie of Cushman & Wakefield’s Phoenix office represented the Tenant.

Grand Retail Plaza, WEB

ViaWest sells Grand Retail Plaza for $1.3M

ViaWest Group has sold Grand Retail Plaza, a premier multi-tenant strip center located at 9827 W. Grand Ave. in Sun City, Ariz., for a total consideration of $1.3 million. The property was 100% leased at time of sale.

Phoenix-based ViaWest Group sold the property to Kanjibhai Ghadia of Anaheim, Calif. Steve Julius and Jesse Goldsmith with CBRE’s Phoenix office negotiated the $1.3 million transaction.

ViaWest purchased the property in September 2011 from Pacific Western Bank subsequent to the original developer losing the property to foreclosure. At the time, the property was 100% leased but all the existing tenants had near-term lease expirations. “After purchasing, we reached agreements with all the existing tenants to extend their leases, except for one which we replaced with Domino’s Pizza on a 10-year lease. Additionally, shortly after acquisition we were able to creatively restructure an existing billboard lease by converting it to a perpetual easement allowing us to further enhance the economic performance of the asset by significantly reducing our basis,” added Danny Swancey of ViaWest Group.

Grand Retail Plaza, which totals approximately 6,369 square feet and sits on 0.78 acres in the master-planned retirement community of Sun City, is currently fully occupied by five tenants, including Domino’s Pizza, Edward Jones, HE/PA Enterprises, Cash for Gold, and Cricket Wireless.

Grand Retail Plaza is a superbly-located asset in excellent physical condition,” said CBRE’s Julius. “The property has no other retail competition at the intersection and has excellent Grand Avenue frontage and visibility. In addition, the property has a strong leasing history due to the success of each of its tenants.”

Built in 2003, the property sits just west of the Loop 101 freeway and approximately 30 minutes from the Phoenix Sky Harbor Airport. Located on the southeast corner of 99th Avenue and Grand Ave/US 60, Grand Retail Plaza sees an average of 41,707 vehicles per day via Grand Avenue and another 14,500 vehicles per day on 99th Avenue.

ChandlerMidway, CassidyTurley

Sprint Leases 12,394 SF at ViaWest Properties’ Chandler Midway

Cassidy Turley, a leading commercial real estate services provider in the U.S., announced that it completed a 12,394 square foot lease for Sprint at Chandler Midway, 5710 West Chandler Boulevard. Executive Vice Presidents Mark Stratz, Tyler Wilson and Scott Baumgarten with Cassidy Turley’s Office Group represented the landlord, locally based ViaWest Properties, while Dave Barrett with CBRE represented the tenant.

Sprint, one of the largest wireless and wireline carriers in the United States, will relocate its sales and training division to Chandler Midway from a building in the Sky Harbor Airport submarket.

“Chandler Midway is arguably the highest quality large block office project in the Southeast Valley,” Mr. Baumgarten said. “Securing Sprint as another strong tenant only confirms its place in the market.”

Built in 2007, Chandler Midway includes an 189,000 square foot office building and multiple office condominiums. The project is centrally located between Interstate 10, Loop 101 and the new Loop 202 Freeway, and is in close proximity to Chandler Regional Hospital. It is within 3 miles of 3 million square feet of retail amenities and 15 minutes from Sky Harbor International Airport.

Chandler Midway is 45% leased. The property has 55,908 square feet of contiguous space available, as well as a 5,066 square foot spec suite located on first floor. The office condos range in size from 1,000 to 5,054 square feet and are currently 80% sold out.

SanTanTechCenter, WEB

CBRE Completes Sale of San Tan Tech Center to ViaWest Group

CBRE represented the seller in the sale of San Tan Tech Center located at 145 S. 79th St. in Chandler. The 129,187 SF, Class-A property building was purchased by leading local, commercial real estate firm, ViaWest Group, for $9.6M.

Barry Gabel and Chris Marchildon of CBRE’s Phoenix office represented the seller, Austin, Texas-based Capital Commercial Investments. ViaWest Group was self-represented.

The city of Chandler currently leases 49 percent, or 63,443 SF, of San Tan Tech Center under a lease expiring in 2024. The city is doing business as Innovations, an incubator designed for innovative entrepreneurs in the life sciences and emerging technology industries. Notable tenants within the Innovations incubator include University of Arizona Center for Applied NanoBioscience & Medicine, HealthTell and Cummings Engineering, as well as other emerging technology companies.

This acquisition is a strong complement to our nearly 1MM SF of assets in the Southeast Valley. With the ability to do 7 parking spaces per 1,000 SF for back-office to high-tech industrial uses, this property is truly unique in the market. Its proximity to the 101 freeway and Chandler Fashion Square provides easy access and great amenities. We believe that with the aesthetic and functional improvements we will immediately make to the property it will be a very desirable space for tenants of 20,000 to 65,000 SF,” said Steven Schwarz with ViaWest Group.

Built in 1981 and renovated in 2010, San Tan Tech Center, a single-story, back-office/flex/high-tech industrial building, is located between McClintock Drive and 79th Street less than one quarter mile south of Chandler Boulevard and one half mile north of the loop 202 freeway. The property offers many amenities, including easy access to numerous regional shopping centers, hotels and dining options. San Tan Tech Center is adjacent to the privately owned, public use Stellar Airpark. Additionally, Phoenix Sky Harbor International Airport is within 15 minutes of the property and two reliever airports – Chandler Municipal Airport and Phoenix-Mesa Gateway Airport – are within seven and 10 miles each, respectively.

Capital Commercial did a fantastic job renovating the property and leasing half of the building to the city of Chandler, which positioned the seller for a positive exit strategy,” said CBRE’s Gabel.

San Tan Tech Center currently has 65,744 SF of vacant, fully air conditioned available space. The unoccupied space is a large contiguous space which includes bullpen areas, private offices, a commercial kitchen, storage and shipping areas, which are dock-high loaded.

Warner Business Center, Voit, ViaWest

ViaWest Group Sells Warner Business Center for $40M

Responding to the increasing investor demand in Metro Phoenix, ViaWest has sold its largest asset, Warner Business Center.  ViaWest had purchased the loan on the seven-building property for $31M in April 2013 and foreclosed on it in May 2013.  As ViaWest began implementing its lease-up strategy, commencing vacant suite improvements, and renewing some leases in the third quarter 2013, it was approached by the buyer to explore a potential sale.  The sale was consummated on December 24, 2013, for $40M to Warner Business Center I, LLC and Warner Business Center 4, LLC, both managed by Voit Real Estate Services.
Both parties represented themselves in the transaction. Bill Bayless of CBRE had served as ViaWest’s leasing agent and was instrumental in the success of the project.  Tom Richards of Voit Real Estate Services worked on behalf of the buyer in managing a smooth transaction.
The property is presently 67% occupied with twenty-one tenants.  The buyer will be able to significantly increase the rental income through additional leasing.  The 321,327 SF asset is ideally located on Warner Rd. just east of I-10 freeway and caters to office, industrial, and showroom users.  With a range of suite styles, the property is excellent for tenants needing a variety of functions, including office, warehouse, truck doors, open ceiling, major street frontage, high parking ratios, heavy power, and more.
“While it was our initial desire to hold this asset for a longer period, the sale was the right thing to do for the strategic benefit of our company and investors.  The proceeds of the sale will free up significant capital for us to continue building our value-add portfolio.  We believe the buyer purchased a wonderful long-term asset and therefore this was a win-win situation for all parties,” noted Gary Linhart, Co-Founder and Principal of ViaWest Group.
“While this sale reduces our portfolio to just below 1.5 MSF, we are quickly filling the gap with two strategic purchases.  As well, the buyer has recognized our strong capability in property management and therefore has hired us to continue that effort.  They were wonderful to work with, and we could not be happier for them,” added Steven Schwarz, also a Co-Founder and Principal of ViaWest.
Voit Real Estate Services will serve as the leasing brokers on the property.