Cushman & Wakefield announced the firm has represented both buyer and seller in the sale of The Arc (formerly know as Stapley Corporate Center), a 180,110-square-foot Class A office project located in Mesa (Phoenix), Arizona. Crafted in 2007/2008, the 87% leased, two-story, two-building, 5.2/1,000-parked project features a tenant roster of physician-occupied (23%) and medical-related (40%) users that combine for nearly 70% of the project’s occupancy.
The property was acquired by the joint venture of Cypress Office Properties and Harbert Management Corporation for $37 million. The seller was Buchanan Street Partners.
Cushman & Wakefield’s capital markets team of Chris Toci and Chad Littell handled the transaction on behalf of both parties. The firm’s Sheila Bale, Tom Weinhold, and Kristina Cutillo provided medical leasing advisory.
“Due to strict regulations for medical professionals about work from home (WFH), we are confident that The Arc is an ideal Class A office project for complete conversion to medical office,” said Chris Toci, Executive Managing Director.
“Capitalizing on a trend of robust healthcare employment in Arizona, coupled with a COVID-induced desire among physician and patients to be located off hospital campuses, the Cypress/Harbert duo intends to reposition the project to complete medical office,” remarked Mark Wayne of Cypress Office Properties. “The property’s convenient freeway access, adjacent retail amenities and physical design make it an ideal asset for full medical office conversion” added Wayne.
Located at 1840 and 1910 South Stapley Drive, The Arc is situated on over 14 acres in the Phoenix Metro area. The property was originally developed in 2007/2008 by Desco Southwest and features dramatic architectural design elements that include two-story lobbies with sky-lit, vaulted barrel ceilings. The expansive, east-facing elevation flanks a striking landscaped, circular center drive, providing a dramatic entrance to the campus and inviting of a medical office reposition.
Over 2,200 hospital beds are positioned with a 15-minute radius of The Arc and account for 17% of all hospital beds in the State of Arizona. In addition to the wide-ranging lineup of general and specialty hospitals in the Southeast Valley, the area surrounding The Arc has multiple healthcare facilities that are equipped for outpatient procedures, imaging, emergency services, and general medical care.
“The Arc is an outstanding project that we believe is well-positioned for continued conversion to medical office—a subtle trend that presented itself in the waning years of our holding term,” commented Garrison Weaver, Asset Manager at Buchanan Street Partners.