CBRE completed the sale of a commercial property that had been redeveloped into an office space for $3.9 million.

The property was formerly a Bally Total Fitness facility, and is located in the Arizona Business Park at 15401 N. 29th Avenue in Phoenix.

Ashley Brooks and Jim Bayless with CBRE’s Phoenix office negotiated the transaction. The seller was James Greaves with G2 Capital of Scottsdale.

The buyer was Phoenix-based Retinal Consultants of Arizona, which is the largest ophthalmology practice in Arizona with a focus on the diagnosis and management of the retina and vitreous.

Retinal Consultants will utilize the property to see patients. They will also run company administration operations from this location.

“This was an exciting project with many nuances. We’re glad that Retinal Consultants of Arizona chose to buy the building and make it their premier location. They got an essentially new building at a great price,” Greaves said.

“The Valley’s office market is facing a dearth of high quality, function space,” said CBRE’s Brooks. “Office users, especially those with larger footprints, know they need move on space quickly if and when it becomes available. This sale is a reflection of that reality. The market is going to see a lot more redevelopment this year to try and accommodate the demand for modern office space.”

Recognizing the opportunity to redevelop the distressed property for alternative uses, G2 Capital purchased the former Bally’s in early 2015 for just over $1 million.

G2 Capital spent several months researching the market for this opportunity. Immediately after closing escrow, G2 Capital demolished all existing improvements, including the locker rooms and pool, and began to add glazing, landscaping, a new parking lot and new HVAC units.

Originally developed in 1988, the 36,678-square-foot property is situated at the northeast corner of 29th Avenue and Greenway Road in the Arizona Business Park within the I-17 Freeway corridor of north Phoenix.