CBRE has completed the $14.6 million sale of Desert Canyon 200, a three-story, multi-tenant Class A office building located at 2421 Peoria Ave. in Phoenix. The 98,863-square-foot property sits on 6.74 acres within the 22-acre, three-building Desert Canyon Corporate Campus.
Barry Gabel and Chris Marchildon with CBRE Capital Markets, Institutional Properties in Phoenix, represented the seller, Scottsdale, Ariz.-based G2 Capital. The buyer was DL Properties of Chino, California, represented by Rich Heine with Southwest Investment Properties. Trent Snarr with CBRE Capital Markets’ Debt & Structured Finance in San Jose, California, secured the financing for the buyer. The bank loan included a 10-yr term, 70% loan-to-purchase price, 30-yr amortization, flexible prepayment penalty and no leasing reserves.
After acquiring the asset in January 2017 at 69 percent occupancy, G2 Capital made significant enhancements to the property, which included common area renovations like abundant glass, lobby furniture, interior paint and tenant directory signage; newly built, move-in ready spec suites, HVAC and lighting upgrades; parking lot seal coat and stripe plus added covered parking; exterior paint; new landscaping; and interior monument signage.
“CBRE helped us put together a great plan for repositioning the property,” said James Greaves of G2 Capital.
Barry Gabel with CBRE continued: “Completion of these improvements contributed to the uptick in leasing activity at the property, which is now 93 percent leased to a strong, diverse tenant mix.”
Matrix Absence Management, a subsidiary of Tokio Marine Group (S&P: A+), occupies 69 percent of the property. Other tenants include Ameriprise Financial (NYSE: AMP), USI Insurance Services, and research organization Stephens & Associates.
The property is centrally located along the I-17 corridor, a preferred location for large corporate users. It offers nearby access to the full-diamond I-17 Freeway interchange with Peoria Avenue as well as several shopping and dining options, including Metrocenter Mall.