CBRE has completed the $18.2 million sale of The Brookstone, a two-building office and medical campus in the heart of Midtown Phoenix to a San Diego-based investor.
CBRE’s Geoffrey Turbow, Gary Cornish, Matt Pourcho, Anthony DeLorenzo and Bryan Johnson represented the seller in the transaction.
The two buildings, located at 340 E Palm Lane and 2025 N 3rd St., are comprised of 63,128 square feet and 63,378 square feet, respectively. The Brookstone features courtyards, koi ponds, balconies, common areas and multi-tenant suites. The property has had an average 89 percent occupancy over the past five years, including such tenants as Honor Health, Signature Dental Partners, Alzheimer’s Association and The Florence Immigration and Refugee Rights Project.
“The Brookstone is an exceptional property that drew significant buyer demand within a few weeks of marketing,” said Turbow. “The majority of the interest came from Southern California, including the buyer, a San Diego-based 1031 exchange investor who bested five other bidders. This buyer went non-refundable upon the opening of escrow.”
Added Pourcho, “We continue to witness an influx of money from California into Phoenix, particularly from high-net-worth 1031-exchange buyers. The Brookstone was a one-of-a-kind opportunity to acquire a premier value-add office with exceptional short- and long-term upside.”
The Brookstone’s central location in the Los Olivos Historic District provides tenants access to the Central Business District, hotels, museums, theaters, and restaurants. The property is also in proximity to Sky Harbor International Airport, Downtown Phoenix, Footprint Arena and Chase Field.
Phoenix office leasing activity for the 4th Quarter 2021 was up as evidenced by the metro’s overall 314,247 square feet of positive net absorption and more specifically suburban positive net absorption of 472,797 square feet, according to CBRE research.
