CBRE completes sale of $39M office project
Velocis, a private equity real estate fund, purchased Park One, a three-building, multi-tenant, Class A office development totaling 205,000 square feet in the Camelback Corridor in metropolitan Phoenix.
A team of brokers including Barry Gabel, Chris Marchildon, and Kevin Shannon represented the seller, a joint venture between California-based McCarthy Cook & Co. and New York-based Morgan Stanley Real Estate. CBRE’s Capital Markets’ Debt and Structured Finance team, including Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart, worked on behalf of Velocis and the lender, providing debt financing for the purchase.
“Park One is ideally located in the Camelback Corridor, which is one of the most desirable office markets in metropolitan Phoenix,” Gabel dsif who is with CBRE’s Phoenix office. “Park One offered Velocis the opportunity to buy a newly renovated, TOBY award-winning, income-producing property, located in the heart of the Camelback Corridor at a substantial discount to replacement cost.”
According to CBRE Research, the Camelback Corridor has the highest average rental rates and property values in Phoenix. CBRE Econometric Advisors ranks the Camelback Corridor as a top-10 office submarket for rent growth, forecasting 6.3 percent average annual rent growth over the next three years.
“This is Velocis’ second office building acquisition in the Phoenix/Scottsdale market working with Barry Gabel and his team,” said Paul Smith, principal, Velocis. “We like the office market fundamentals and the strong job growth currently taking place in the Valley.”
Jim Yoder, principal, Velocis adds, “An institutional-quality asset like Park One is a great fit for our acquisition strategy. We look forward to unlocking hidden value with additional capital improvement projects and an enhanced customer and tenant experience.”
Park One is located at 2111, 2121 and 2141 E. Highland Ave. in Phoenix. The property was 84 percent leased at time of sale and features a diverse tenant roster that includes various law firms, financial advisors, engineers and other professional services firms.
Situated within a park-like campus environment, Park One features a private two-acre lake, landscaped paths and bridges and abundant outdoor seating areas. The property also includes a freestanding restaurant/sports bar, a café and an on-site fitness center that was recently renovated in 2014 with new equipment and both above grade and below grade covered parking.
Park One is Velocis’ second acquisition in the Phoenix market. In 2015, the Fund purchased Camelback Square, a three-story Class-A office project in the heart of Old Town Scottsdale.
Velocis, has been active in real estate investment since 2011, purchasing 21 assets located in markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. Velocis is led by a team of five seasoned principals who are directly responsible for the acquisition, asset management and disposition of assets.