NKF represents recapitalization of East Gateway Centre
Newmark Knight Frank (NKF) announces the recapitalization of East Gateway Centre by Pacifica Real Estate Group. The 2-building, four-story, 230,902-square-foot Class A office complex located at 4646 & 4686 E. Van Buren Street in Phoenix was recapitalized with TriGate Capital LLC.
NKF was hired by Pacifica Real Estate Group to provide exclusive marketing and representation services for East Gateway Centre, with a team that included Co-Head, U.S. Capital Markets Kevin Shannon, Executive Managing Directors, CJ Osbrink, Paul Jones, Ken White, Brunson Howard and Senior Managing Director Rick Stumm.
“East Gateway Centre consisted of two high-quality, centrally located office buildings that are 74% leased, offering ownership an immediate opportunity to add value through the lease-up of available space,” commented Osbrink, who led the team that provided exclusive marketing services for the property. “This opportunity saw an aggressive and broad investor pool and ultimately brought in an out-of-state capital partner this was their first office transaction in Phoenix.”
East Gateway Centre is located in Phoenix’s 44th Street Corridor submarket, widely considered one of the most accessible and dynamic locations in Metropolitan Phoenix. The property offers immediate access to multiple freeways, the METRO Light Rail, Phoenix Sky Harbor International Airport and major arterial streets, all of which combine to provide unrivaled access to a large, diverse labor pool.
Currently 73.7% leased to a diverse mix of credible national and regional tenants across a broad spectrum of industries, East Gateway Centre features in-place rents more than 12% below current market rates. “The East Gateway Centre transaction creates an ideal value-add opportunity for ownership,” explained Osbrink. “A strategic capital improvement plan focused on introducing new tenant amenities, refreshing common areas, and preparing move-in ready spec suites that will spark leasing velocity, provides ownership the opportunity to significantly enhance cash flow both through the lease-up of existing vacant space and by rolling leases to premium market rates as they naturally expire.”