A portion of the office building at 3033 N. Central Ave. and its adjacent parking garage has been sold to a Canadian investor as its first Midtown Phoenix acquisition. The buyer was attracted to the property because of its proximity within the increasingly popular “Live Work Play” Central Phoenix corridor.
“This complex transaction involved the sale of a portion of a nine-story mid-rise tower on Central Avenue,” says Mindy Korth, executive vice president with Colliers International in Greater Phoenix. “Years ago, the tower had been converted to office condos and a real estate cycle downturn halted the unit sales to owner/occupants. This left the tower with a portion of its square footage still landlord-controlled for multi-tenant leasing. That status provided a unique opportunity for the buyer to gain a significant position on Central Avenue with a cost-effective investment. The transaction presented a high level of complexity because the asset is involved in a condominium regime, owners’ association agreements and sharing of infrastructure services with the adjacent high-rise building.”
Korth, Charles Miscio and Kirk Kuller of Colliers International in Greater Phoenix represented the seller in the transaction. Jim Bayless, Kate Morris and Vince Femiano of CBRE represented the buyer.
Phoenix Central Park Medical LP purchased the property from an entity represented by The Krausz Companies, a San Francisco based real estate company.
The post-modern design building was originally built in 1960 as a part of the class A Prudential Plaza that also includes a 25-story high-rise. It was extensively remodeled in 2005, when the condominium regime was established. Located on 2.68 acres of land directly across from Park Central Mall it is in the heart of Midtown. What many don’t know is that the building was once home to one of several Playboy Clubs in the U.S., opening in 1962 and closing in 1983. It sat on the ninth floor of 3033 N. Central Ave.
The sale included 80,230 square feet of multi-tenant office space, which was 30 percent leased at the time of the sale. The overall building area totals approximately 134,164 square feet. The Buyer came to the transaction with a sizable prospective tenant that is poised to lease approximately 38,000 square feet of the tower’s vacant space.
“This asset offered tremendous upside at a fraction of replacement cost,” says Korth. “Central Phoenix is attracting a wide range of employers and new residents and has become a 24/7 community. The Midtown submarket is poised for dynamic recovery and the buyer will benefit from the timing of their purchase.”
The Krausz Companies specialize in the acquisition, development and management of high quality, well-located retail, office, industrial and mixed-use properties throughout the United States.