CBRE has negotiated the sale of Tempe Towne Centre located at 20 E. University in Tempe, Ariz. The ±21,737-square-foot multi-tenant, class A office property commanded a sale price of $5.25 million and was 95 percent occupied at time of sale.
Barry Gabel and Chris Marchildon with CBRE’s Phoenix office, in conjunction with CBRE’s National Loan Sale Advisory Group, represented the seller, Brookfield Asset Management of Toronto, Ontario, Canada. The buyer was Tempe-based Tempe Towne Center LLC, a holding company owned by YAM Management, who negotiated on their own behalf. This purchase marks YAM Management’s second property at the prominent University and Mill intersection, having previously acquired Centerpoint on Mill in the fall of 2013.
“This transaction is just another indicator of the unique strength of the Tempe market and the continued improvement of the Phoenix-metro area in general,” said CBRE’s Gabel. “With its infill location and strong tenant rent roll, Tempe Towne Centre is an excellent investment opportunity in a thriving submarket and compliments the buyers other recent purchase of Centerpoint on Mill just west of the building.”
The acquisition of Tempe Towne Centre comes just months after YAM Management’s purchase of Centerpoint on Mill. The mixed-use commercial property, which was originally developed by a unique public-private partnership between Scottsdale-based DMB, Inc. and the City of Tempe, was purchased by YAM in October 2013.
Tempe continues to be one of the most active and healthy markets in the metro area, and downtown Tempe continues to exceed industry market conditions with a Class-A office vacancy rate of just 3.81 percent. Vacancy for all of Tempe checked in at 9.4 percent at the end of the fourth quarter 2013. Compared to a fourth quarter vacancy rate of 22.4 percent for the metropolitan area as a whole, it’s no surprise that investors are flocking to the submarket and its amenity rich environment.
Tempe Towne Centre is directly across the street from the site of USA Place, the future home of USA Basketball’s headquarters, which will relocate from Colorado Springs, Colo. The 10-acre site will eventually be home to a 330-room, luxury hotel connected to a 30,000-square-foot conference center, both operated by Omni Hotels & Resorts. The basketball facility will include five full courts and two-half courts for national team tryouts and training camps and can be configured to seat up to 4,500.
Located in the core of a major employment hub with more than 200,000 jobs in a five mile radius, Tempe Towne Centre also benefits from its location next to Arizona State University and as part of the Mill Avenue District. Proximity to the Loop 101 and Loop 202 freeways provide residents with excellent access to the property and at 95 percent leased at time of sale, the property has a solid mix of tenants that include Wells Fargo Bank, JPMorgan Chase and Arizona State University.
