Newmark Knight Frank (NKF) has announced the sale of the Wells Fargo Building at Papago Park for $52.4 million, or $244.51 per square foot. The three-story, 214,303-square-foot office building located at 1150 West Washington Street in Tempe is 100% occupied by Wells Fargo.
NKF Executive Managing Director CJ Osbrink, Co-Head, U.S. Capital Markets Kevin Shannon and Executive Managing Directors Paul Jones, Ken White, Rick Stumm, Brunson Howard, and Mike Garlick represented Phoenix Investors #22, L.L.C, dba Greenwood & McKenzie, in the marketing and sale of the Wells Fargo Building at Papago Park. The buyer, an affiliate of Menlo Equities, was self-represented.
“The Wells Fargo Building at Papago Park provides new ownership the opportunity to acquire a secure and attractive income stream with investment-grade credit tenancy,” commented NKF Executive Managing Director CJ Osbrink, who led the team in the sale of the property. “Offering excellent regional access in a highly desirable location in Papago Park Center, the Wells Fargo Building at Papago Park was a highly appealing investment opportunity to investors and saw a broad and aggressive buyer pool.”
NKF research noted that Papago Park Center is one of Tempe’s most active and robust micro-submarkets with $67.3 million invested in office product in the past 24 months. The ±500-acre, mixed-use development spanning 2.6 MSF of office space (existing and under construction) is located in an area that is also a hotbed for multifamily development with 1,316 units currently existing and under construction. With average Class A office rental rates in Papago Park Center at an all-time high, pushing $32.69 per square foot (full service gross), Papago Park Center is in high demand from STEM and FIRE (financial, insurance, real estate) tenants who desire to be located within Tempe’s urban core.