Transwestern Investment Group (TIG) announced Corporate Properties Trust III LP has closed on the acquisition of a 2 million-square-foot Tempe property in a sale-leaseback with State Farm Auto Insurance Co. This transaction resembles the acquisition of the 2.2 million-square-foot State Farm campus in Dallas’ CityLine project last fall and the 591,000-square-foot State Farm campus in Atlanta this summer. 

“The closing of the Tempe transaction, the third in a series including Dallas and Atlanta, signals the execution of a strategy State Farm designed as a priority several years ago,” said Larry P. Heard, CEO of the Transwestern family of companies. “We have enjoyed a 35-year relationship with State Farm and look forward to helping this outstanding company achieve its objectives for years to come.”

TIG believes the sale-leaseback structure has benefitted both parties with steady cash flows generated from the long-term lease with State Farm and stable, long-term ownership and management for the tenants.

“Marina Heights is a world-class project to add to our portfolio,” said Charles Hazen, President of Transwestern Investment Group. “We have enjoyed working with State Farm and a new equity partner, JDM Partners LLC of Phoenix, on this transaction, and we look forward to continuing to provide best-in-class service to State Farm as the owner and manager of Marina Heights.”

Corporate Properties Trust III LP, a partnership between TIG and JDM Partners LLC, acquired Marina Heights, a five-building, LEED®-certified office park spanning 20 acres with ground-floor retail, restaurants and other amenities at 300 – 600 Rio Salado Parkway. The Class A+ asset is strategically located between Arizona State University and Tempe Town Lake, providing convenient access to Loop 202 and proximity to Phoenix Sky International Airport. Additionally, Marina Heights will be a future stop for the Tempe Streetcar, directly connecting the campus to the airport, downtown and central Phoenix, as well as west Mesa via the Valley Metro Light Rail.

The investments will be managed by a wholly owned subsidiary of TIG. Transwestern will provide management services for all three properties in the transaction series.

In the Marina Heights transaction, the legal adviser was King & Spalding and Eastdil Secured was the debt capital adviser.