Newmark Knight Frank (NKF) announces the $54.5 million sale of 3900 Camelback Center — a Class A, LEED Gold Certified office building located in the Camelback Corridor—one of the most prestigious and sought-after office submarkets in Phoenix, Arizona. 3900 Camelback Center is one of seven LEED Certified office buildings in the Camelback Corridor, and one of only four with Gold level or above. NKF Co-Head, U.S. Capital Markets Kevin Shannon cooperated with Executive Managing Director CJ Osbrink to represent the developer, builder, owner and property manager, Ryan Companies, in the disposition of the 177,520-square-foot asset to the buyer, Wilshire Capital Partners. NKF Vice Chairman David Milestone and Senior Managing Director Brett Green facilitated in the financial structuring and placement of debt for the sale. Along with Shannon, Executive Managing Directors Paul Jones, Ken White and Brunson Howard and Senior Managing Director Rick Stumm also cooperated with Osbrink to represent the seller.
“This sale represents a distinct trend for Phoenix sales with a new California buyer entering the market attracted to the comparative yield advantages available there. This Los Angeles-based buyer was especially attracted to the double-digit cash-on-cash returns, which were augmented by a very favorable debt market,” said Shannon.
“We were drawing from a broad and competitive buyer pool when it came to 3900 Camelback Center, given the high-profile trophy asset class, attractive going-in returns and committed tenant base, along with location in a top-tier submarket in the Camelback Corridor,” commented Osbrink.
Located at 3900 Camelback Road, the office asset was one of the newest office buildings in the Camelback Corridor submarket to sell this year, achieving an attractive price per square foot of $306.44. “We continue to see aggressive new capital pushing into the top submarkets in Phoenix in search of strong cash flow and quality real estate, like 3900 Camelback Center,” added Osbrink.
The building’s U.S. Green Building Council’s LEED Gold Certification design features include xeriscape landscaping, stormwater management, water-efficient fixtures and parking for fuel-efficient vehicles. Local, recycled materials and natural wood and stone finishes are used throughout the space. The property features terraced balconies and stunning views of Squaw Peak and the Camelback Mountains. Building tenants include Ryan Companies’ Southwest office, corporate headquarters for Shamrock Foods and others.