CBRE has negotiated the sale of Wells Fargo Gainey Center, a 141,047-square-foot Class A office building in Scottsdale, Ariz. AREA Exchange Asset III, LLC, an affiliate of Ascent Real Estate Advisors, an independent real estate investment firm based in New York City, acquired the Class A multi-tenant office property from Des Moines, Iowa-based Principal Real Estate Investors.
Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix represented the seller in the transaction. Bruce Francis, Tim Bokinsky, Dana Summers, Bob Ybarra, Shaun Moothart and Doug Birrell of CBRE Debt & Structured Finance facilitated the acquisition loan for the buyer with a national life insurance company.
Located at 8601 N. Scottsdale Road, the three-story LEED Gold and Energy Star rated building has prominent visibility and frontage along Scottsdale Road. The property is adjacent to a variety of high-end housing, retail and hotels.
Built in 1999, Wells Fargo Gainey Center features institutional quality improvements, dramatic two-story lobby, an on-site gym, flexible floor plates, 20 exterior balconies and a parking ratio of four spaces per every 1,000 square feet, the majority of which is located within a 3.5 level above and below-grade parking garage.
“Wells Fargo Gainey Center has been institutionally owned and managed since its inception and the strength of its tenancy, quality office finishes and irreplaceable market location will continue to provide reliable cashflow for the buyer, for years to come,” said CBRE’s Gabel.
The building was 96 percent leased at the time of sale to nine tenants, including Wells Fargo (NYSE: WFC; S&P: A-), and national law firm Kutak Rock, which combined occupy 71 percent of the property. It is one of the few properties across metro Phoenix to boast a 90 percent average historical occupancy for more than two decades, according to CBRE Research.