EverWest Real Estate Investors and CarVal Investors have completed the $46 million sale of The Circuit, a 185,000-square-foot adaptive re-use office project located at the intersection of the Loop 101 and Loop 202 in Tempe, Arizona.
EverWest and CarVal were represented by Chris Toci of Cushman & Wakefield. The property buyer is Strategic Office Properties, a wholly owned subsidiary of TPG Real Estate.
“The Circuit was designed to attract large, creative office users and it has been a textbook execution of that strategy,” said EverWest Managing Director for the West Coast Amr Ceran. “Our successful redevelopment and lease-up here, combined with The Circuit’s high-profile location, garnered significant institutional interest and led to a strong sale that will bring benefit to all parties.”
“The conversion of this project from a dated manufacturing facility to the innovative, collaborative space you see today is truly transformational,” added CarVal Investors Managing Director Mark Kunkel. “That bodes well for the future of these two dynamic tenants.”
The Circuit is 100 percent occupied by two national credit tenants: Oscar, the country’s fastest growing health insurance startup, leasing 139,700 square feet, and On Q Financial, a leading online provider of mortgage tools, leasing 44,600 square feet.
Located on 16 acres at 615 S. River Dr. in Tempe, The Circuit represents a $14 million redevelopment completed by EverWest and CarVal between July 2014 and September 2016, transforming the project from a 1982-built semiconductor building into an ultra-modern office concept.
Directed by design and architecture firm Gensler, interior amenities at The Circuit include 17-foot ceilings, 14-foot floor-to-ceiling windows and more than 60 skylights to maximize natural light. The Circuit also features a host of indoor-outdoor amenities such as glass roll-up doors, large landscaped patios and outdoor entertainment areas. The project’s parking ratio, at 7:1,000, is approximately 40 percent higher than most other office buildings in the market.
EverWest has an active track record of successful creative office renovations spanning major markets across the West. In addition to The Circuit, these include LINQ in Redondo Beach, California; Junction 23 in Denver, Colorado; The Quad in Scottsdale, Arizona; and UpCycle in Austin.