CBRE sells Tempe office property for $132M
CBRE announced the $132 million sale of two office buildings totaling 300,000 square feet in Tempe, Ariz. to Strategic Office Partners. The sale is the highest-priced and largest office transaction year to date in 2021 within the region.
CBRE’s Barry Gabel, Chris Marchildon and Will Mast represented the seller, Boyer Company. Bryan Taute and Charlie von Arentschildt of CBRE were the leasing agents for the property, securing the tenant, Freedom Financial Network on a long-term basis.
The two newly constructed buildings, located at 2114 & 2116 South Freedom Way, are situated within the 60-acre Rio2100 business park and are fully leased by Freedom Financial Network. The four-story office properties feature two parking structures, the largest office building commercial kitchen in Arizona, 14’-16′ deck-to-deck ceiling heights and abundant frontage and access to the Loop 101 & Loop 202 Freeways. The buildings are adjacent to several other institutional-quality properties within the business park, leased by such companies as Morgan Stanley, Siemens, Grubhub, and Benchmark Electronics, among others. Also within the park are two multifamily developments, two hotels and a variety of retail amenities.
“On behalf of The Boyer Company we wish to thank Strategic Office Partners for their seamless execution and thoughtful approach during the entire sales process,” said Boyer Company’s Arizona Partner Adrian Evarkiou. He added, “We are very proud of Rio 2100 and the numerous companies that have selected this business park as their office location, along with the restaurants, retail, two hotels and expanding multifamily properties.”
In addition to the best-in-class office improvements and long-term tenancy and professional business park environment, the property is centrally located within the core submarket of Tempe, which boasts the lowest vacancy and highest Class-A rental rates across the Phoenix Metro area, according to CBRE research.
“The Tempe area has developed into the go-to destination for new office investor capital, Class A development, and new-to-market tenants alike,” said Marchildon.
Added Gabel, “The sale of Rio2100 provides the buyer with a long-term income stream with a strong tenant in two newly constructed, best-in-class office buildings. The dynamic Tempe location, substantial freeway frontage, and favorable property tax are all reasons this is a fantastic investment for years to come.”
A recent survey of commercial real estate investors ranked Phoenix as a top-10 target among Americas metros. The Sun Belt market jumped five spots to #4 in CBRE’s 2021 Americas Investor Intentions Survey.