CBRE sells 2-property portfolio to Kuwaiti investor for $25.9M
CBRE has negotiated the sale of a two-property office portfolio consisting of three buildings in metro Phoenix to a Gulf-based, high-net-worth investor for a total consideration of $25.95 million. San Diego-based advisory firm, Property Income Advisors, Inc., acquired the portfolio from Irvine, Calif.-based LBA Realty, on behalf of the Kuwaiti investor.
Property Income Advisors, Inc. is a real estate advisory firm that exclusively assists Gulf-based clients in the investment and management of U.S. commercial real estate. This is a continuation of the Gulf-based investor’s U.S. acquisition strategy, previously acquiring two single-tenant assets and a portfolio of apartment properties.
Barry Gabel, Chris Marchildon and Will Mast with CBRE Capital Markets, Institutional Properties, Phoenix represented the seller in the transaction.
The portfolio consists of Cotton Center I, a 115,176-square-foot, 100 percent leased office building located at 4025 East Cotton Center Blvd. in Phoenix in Arizona’s largest master-planned business parks, and Greystone Business Park, two buildings totaling 60,793-square-foot and 89 percent leased. Greystone Business Park is located a half-mile southeast of Cotton Center I at 2552 West Erie Drive and 2801 South Fair Lane in Tempe, Ariz. The properties averaged a 96 percent occupancy at the time of sale and were leased to a strong mix of credible, nationally recognized tenants.
“This acquisition is another example that Phoenix continues to be a top target for both foreign and institutional investors,” said Mast. “Phoenix continues to grow and diversify as a city, and as such, we expect the investor demand to remain strong in the second half of 2018 and beyond.”
The properties benefit from immediate freeway access via State Route 143 and Interstate 10, both of which are less than one mile from each property. Interstate 10 provides access to the surrounding labor markets including Phoenix, Tempe, Scottsdale, Chandler and Mesa. Phoenix Sky Harbor International Airport, the nation’s 11th busiest airport, is located within a short five-minute drive.