On the heels of forming a new brokerage team focusing on both multi-tenant and net leased investments, Managing Director Dennis Desmond and Senior Vice Presidents Tivon Moffitt and Peter Bauman from the Phoenix office of JLL have earned the listing for Papago Gateway Center, a Class A trophy office building in the heart of Tempe, Arizona.
Desmond, Moffitt and Bauman will bring Papago Gateway Center to market for sale this month on behalf of Southern California-based property owner Chestnut Properties.
“Metro Phoenix – and Tempe in particular – are pinging on the radar of major, institutional-level office investors like never before,” said Desmond. “With its iconic design, premier location and major credit tenancy, Papago Gateway Center aligns perfectly with the advantages that investors are looking for.”
Serving as the long-term home to the global headquarters for First Solar, Papago Gateway Center totals 245,670 square feet of institutional-quality, Class A, LEED Gold certified office space. It is located at 350 W. Washington St., at the intersection of Washington Street, Mill Avenue and Curry Road, in the heart of Tempe.
Building features include highly efficient, 38,000-square-foot floorplates; an exterior louver system for automated shade and cooling efficiency; and sweeping views of Camelback Mountain, Papago Buttes, Tempe Town Lake and the downtown Tempe skyline.
On-site amenities include direct access to a Phoenix Light Rail stop, a full fitness center with lockers and showers, the Office Nosh deli, Blink EV charging stations, and manned security. In addition to First Solar, tenants at Papago Gateway Center include Bryan University and WSP USA, Inc.
According to JLL, Tempe is metro Phoenix’s most in-demand office submarket, with a 6.3 percent Class A vacancy rate and average Class A rental rates reaching as high as $45 per-square-foot. Since 2014, Tempe has accounted for 27 percent of all Phoenix office absorption, despite only representing 8.4 percent of the market’s office inventory.
“The combination of market fundamentals and building amenities make Papago Gateway Center a credible, stable, true trophy asset,” said Moffitt. “We expect it to generate significant interest.”
Desmond, Moffitt and Bauman formed their new brokerage relationship in late 2017, following the successful collaboration on a Class A office building located in Albuquerque and leased in full to Raytheon Company.
The team is now utilizing their expertise to represent buyers and sellers of institutional-level, multi-tenant and national net leased investments, focusing on projects 100,000 square feet and above, with a value of $20 million and higher.
In addition to Papago Gateway Center, the team has also recently listed the Banner Health Desert Ridge Outpatient Center in north Phoenix, an office building in Chandler fully occupied by Walgreens, and the two-building, 302,521-square-foot Canyon Corporate Plaza office campus in northwest Phoenix.
“Transaction volume for net leased assets has reached record highs in recent years,” said Bauman. “It is an exciting time to launch this new partnership and to apply our expertise within the JLL network – not only in Phoenix but wherever our client relationships require.”
Collectively, the new team has completed the acquisition and disposition of more than 17 million square feet of office, industrial and retail properties.
“Our backgrounds are diverse, and we bring all of that knowledge to the table. Most importantly, we believe in integrity, professionalism and commitment,” said Desmond. “Our very first objective is to provide superior client care. Successful deals flow down from there.”
Desmond has enjoyed a 40-year career in commercial real estate – the last nine years as Senior Managing Director for JLL, charged with growing the Phoenix office from a tenant-rep operation into a full-service brokerage house with 46 JLL broker experts spanning office, retail, industrial, multifamily, healthcare, and related services within the real estate process.
Moffitt and Bauman joined JLL in 2016 as net lease market specialists, having previously served in net lease and tenant representation roles at brokerage houses in Arizona and Florida. Prior to brokerage, Moffitt worked as a New York-based management and strategy consultant and Bauman as an investment expert specializing in geology exploration at sites across the globe.