Newmark Grubb Knight Frank (NGKF) announces the sale of Scottsdale’s Turnstone Office Park for $10,000,000. The 64,949-square-foot four building office complex located at 17767 – 17797 North Perimeter Drive in Scottsdale sold from Turnstone Office Park, L.P. to private local investors, SLR and NHR Turnstone, LLC. NGKF Capital Markets Managing Director Erik Marsh and Associate Nicole Iglehart assisted both parties on the transaction.
“Representative of some of the value plays still available in our market, Turnstone Office Park was a perfect opportunity for private capital, based on its size, vintage and tenant mix,” added Marsh. “At 65,000 square feet, it was too small to garner institutional interest, so our marketing efforts were primarily focused on private capital investors. The buyers saw upside potential of the asset, coupled with a steady cash flow.”
Turnstone Office park, while one of the earliest multi-tenant developments in Perimeter Center, benefits greatly by its location, surrounded by three-different streets – a rarity with most office buildings, adding to the property’s attraction of great freeway access and visibility, just part of the equation of the property’s long term value. The office park is one of the few properties within the Perimeter Center offering tenants small- to mid-sized suites and more modest rental rates compared to many of the competing Class A properties within submarket.
“Occupancy within the Perimeter Center is resurging, currently 82% occupied,” commented Marsh. “Overall, vacancy in the park tightened from 26.6% in 2015 to 18.4% currently, with 97,400 square feet of positive absorption in 2016. Additionally, surrounded by a strong employment base, Turnstone Office Park will be a good investment for the new owners.”
Turnstone Office Park is located in the Scottsdale North/Airpark submarket, a major employment hub with more than 55,000 jobs and several amenity rich locations including Kierland Commons, Scottsdale Quarter and the Scottsdale Promenade. The vacancy rate for the North/Airpark submarket continues to trend down, at 14.6% as of first quarter 2017, one of the lowest rates in metro Phoenix.