Class-A trophy locations shine in office market rebound
As the Phoenix office market continues a steady recovery, buildings in trophy Class A locations are quickly differentiating themselves as leaders of the pack. Representing 4141 N. Scottsdale Holdings LLC, JLL’s Capital Markets experts today closed on one of these assets, located in the heart of downtown Scottsdale, Ariz. JLL also secured $26.5 million in acquisition financing on behalf of the new buyer, Palisades Capital Realty Advisors LLC.
Senior Vice President Brian Ackerman and Senior Managing Director Dennis Desmond led the JLL team on the $34.5 million sale, while JLL Managing Director Chris Casey and Executive Vice President Reid McGlamery secured the financing.
“This is a highly walkable, Class A environment that is packed with the market’s most popular shopping, dining, entertainment and urban residential amenities,” said Ackerman. “The combination has attracted all types of vibrant, tech-forward companies, quickly pushing rental rates to almost $30 per-square-foot and causing vacancies to drop into the low single digits.”
“We received a tremendous response from lenders who were impressed with the location and quality improvements at the project, as well as the high occupancy, credit tenancy and strong borrower,” added Casey.
The three-story, 147,356-square-foot 4141 building is 91 percent occupied with leases to credit and blue chip tenants. Built in 1989 and renovated in 2013, the project is located at the northeast corner of Scottsdale and Indian School roads, within walking distance to the iconic Scottsdale Fashion Square. It is approximately two miles from the Loop 101 freeway and less than 10 minutes from the Loop 202 freeway and Sky Harbor International Airport. The property features a classic red brick façade, efficient floorplates and 360-degree views of the Camelback and McDowell mountains.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2013 alone, JLL Capital Markets completed $99 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.
For more news, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world. For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: http://bit.ly/18P2tkv.