Newmark Knight Frank (NKF) completed the $91.7 million sale of Raintree Corporate Center, an institutional-quality office project in Scottsdale, AZ. Situated on ±11.6 acres, the 345,417-square-foot, multi-tenant property is 90 percent leased.
CJ Osbrink, Kevin Shannon, Ken White, Brad Burton, and Paul Jones of NKF’s Capital Markets team represented the seller, Equus Capital Partners. The buyers, funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Cypress Office Properties, were self-represented.
Built in 2007-2008 and located at 8800 and 8888 East Raintree Drive, Raintree Corporate Center consists of two, three-story, multi-tenant office buildings featuring a six-level parking garage and various on-site amenities including a deli/restaurant and fitness center. The property is located in the Scottsdale Airpark submarket, one of the best performing and desirable submarkets in the greater Phoenix MSA. Raintree Corporate Center is home to major national and global tenants including the headquarters of Meritage Homes and regional hub for The Hartford.
“Raintree Corporate Center offered new ownership an opportunity to acquire a highly amenitized and institutionally owned and managed office project with attractive going in yields and realistic short-term and long-term embedded value,” said Osbrink.
Mark Jacobs, Managing Director and Co-Portfolio Manager of the Oaktree Real Estate Income strategy added, “Raintree fits the desirable asset profile we look for when deploying capital in our real estate strategy – high-quality, stable tenant base; modern office product without competition from new supply; and location in one of the best submarkets within a high growth market in which we have significant investment experience.”
Raintree Corporate Center is located within one mile of the TPC Scottsdale Golf Courses, home of the world-renowned Waste Management Phoenix Open, and within a half mile of the Scottsdale Airport, the second busiest single-runway airport in the country. Additionally, the property has direct access to and visibility along the Pima Freeway, which has traffic of more than 160,000 vehicles per day.