CBRE arranged $16.8 million in financing for the acquisition of a two-property office portfolio consisting of three buildings in metro Phoenix.
Bruce Francis, Dana Summers, Doug Birrell, Bob Ybarra and Shaun Moothart represented the borrower, an institutional investor based in Kuwait, in securing financing for both sites. The debt was secured with a competitive rate, five years of interest only and a 30-year amortization schedule thereafter. Property Income Advisors, Inc. represented the buyer in the acquisition of the properties.
The first office site, Cotton Center I, is part of Arizona’s largest master-planned business park, located at 4025 East Cotton Center Blvd. in Phoenix. The building totals 115,176 square feet and was 100 percent leased at the time of sale. The second property, located at 2552 West Erie Drive and 2801 South Fair Lane in Tempe, is comprised of two buildings and totals 60,793 square feet. It was 89 percent leased at the time of sale.
Combined, the sites average 96 percent occupancy and feature a strong mix of credible, nationally recognized tenants. Both buildings are ideally located within one mile of State Route 143 and Interstate 10 and five minutes of Phoenix Sky Harbor International Airport.
“Through a very extensive marketing effort and competitive bid process, we were able to garner best-in-class terms and pricing for two uncrossed loans for a foreign investor with an institutional lender,” said Summers. “The debt carried a strong interest-only component, making the loans even more attractive for the investor.”
The Phoenix office market continues to perform well as healthy tenant demand resulted in a significant amount of net absorption, leading to a decrease in vacancy throughout the year, according to CBRE research. The Tempe submarket continues to be in high demand and holds the lowest vacancy rate in the area at 4.8%. Tempe also led the market in terms of office leasing activity with net absorption totaling 129,794 square feet.
