CBRE has arranged the sale of BMO Tower at Central Arts Plaza, a 485,687-square-foot, 24-story Class A high-rise office building in Phoenix. The owners, a joint venture between California-based McCarthy Cook & Co. and New York-based Morgan Stanley Real Estate Investing, sold the property, along with an adjacent 1.94-acre parcel, for $80.7 million.
“BMO Tower at Central Arts Plaza is one of the most visible and iconic properties within metropolitan Phoenix. When you factor in the world-class design, onsite amenities, strong and diverse tenancy, and the Central Arts District location, it created a truly irreplaceable investment opportunity at a price significantly below replacement cost,” said CBRE’s Gabel.
Bruce Francis and Dana Summers with CBRE Capital Markets’ Debt & Structured Finance in Phoenix and Trent Snarr with CBRE Capital Markets’ Debt & Structured Finance in San Jose, California, secured the financing for the buyer. The three-year, 75% LTC loan, with two extension options and two years of interest-only payments, was originated with a debt fund.
Located at 1850 and 1884 N. Central Ave., BMO Tower at Central Arts Plaza is located on a prime, highly walkable location along Central Avenue in Phoenix’s Central Arts District with immediate access to the Metro light rail, executive housing, multifamily housing, and an abundance of restaurants and entertainment venues. Major nearby arts attractions include the Phoenix Arts Museum, Heard Museum, Arizona Opera and Phoenix Theatre.
The building was built in 1991 and designed for Dial Corporation’s international headquarters. On-site amenities include a fitness center, state-of-the-art conference center, café with indoor/outdoor dining areas, a 200-seat theater, sundry shop and 24/7 security. The property also offers 360-degree views of Phoenix’s skyline and iconic Camelback Mountain, a main lobby with 20-foot high ceilings and a rotating art gallery. The building is currently 77 percent leased and features a diverse tenant roster, including Dickinson Wright, The Cavanaugh Law Firm, PwC, Viad Corp. and BMO Harris Bank.
CBRE also has been engaged to provide property management services. John Bonnell, Brett Abramson and Chris Latvaaho with Jones Lang LaSalle have been retained as the leasing agent.