Newmark announced it has completed the $53.1 million sale of The Reserve at San Tan, a 149,321-square-foot, trophy-quality office property in Gilbert, Arizona. Newmark Executive Managing Director CJ Osbrink and Managing Director Scott Scharlach led the sale, along with Co-Head of U.S. Capital Markets Kevin Shannon and his team. Executive Managing Director and Market Leader Mike Garlick also played an instrumental role in the sale and has been retained by new ownership to lead leasing efforts at the property. The seller was Orsett Properties, and the buyer was West Valley Properties, Inc.
The Reserve at San Tan is a 149,321-square-foot, trophy-quality office complex situated on a 12.78-acre site. Built in 2020, the property comprises two, three-story multi-tenant office buildings connected by a common area tenant amenity lounge. The building offers high-end spec suites with open ceilings, creative office finishes and abundant covered surface parking. Additional features include monument signage, building signage, tenant lounges, PRESS coffee on-site and conference facilities.
“This offering generated significant investor interest as a result of its best-in-class new construction, attractive WALT and increased tenant demand,” said Osbrink. “Its location in one of the most active office submarkets in the Phoenix area and status as one of the newest and highest-quality office projects in the region will make it a valuable investment for new ownership.”
“The Orsett team is delighted at how smoothly this transaction went from start to finish. Despite the challenges presented to the office market over the past 2.5 years, lease-up demand at this project remained strong – which I believe is a testament to the collaborative efforts and successful execution by our shell architects at Butler Design Group, interior designers at Phoenix Design One and marketing team at Newmark, to deliver a uniquely attractive class-A office experience,” said Scott Feuer, CEO of Orsett Properties.
The Reserve at San Tan is located within the Southeast Valley, a submarket that has attracted tenant interest due to its diverse labor pool, access to multiple freeway systems and proximity to new attainable housing. The property presents immediate access to the Loop 202 Freeway via full diamond interchanges at Gilbert, Cooper and Lindsay Roads. Tenants are able to benefit from a three-minute drive or five-minute walk to nearly 40 restaurants and over 1.2 million square feet of retail at Crossroads Towne Center. In addition, located just 15 minutes north, The Gilbert Heritage District offers a vibrant dining scene.
The Phoenix Metro office market has held on strong, according to Newmark Research, avoiding many of the obstacles other large metros across the country have experienced due to impacts of COVID-19 on the office sector and the economy overall. Despite heightened vacancy compared to pre-COVID-19 rates, the Phoenix office market has not returned to the elevated vacancy experienced as recently as 2016 and 2017.