December 2, 2020, 12:00 PM
Newmark announces it has facilitated the sale of a newly completed, state-of-the-art office building–Grand2 at Papago Park Center–in Tempe, AZ for an undisclosed amount. The transaction marks the largest office sale to occur this year in Arizona.
Newmark’s Executive Managing Director CJ Osbrink cooperated with Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White, Brunson Howard and Paul Jones and Senior Managing Director Rick Stumm to represent the sellers, Lincoln Property Company (“LPC”) and Goldman Sachs, in the transaction. The buyer, Apex Capital Partners, a first-time buyer of office property in Arizona, was self-represented.
“LPC and Goldman Sachs did an exceptional job executing the vision of this project and delivering a best-in-class office project to the market,” said Shannon. “This is a high-quality, low-risk asset that presents the buyer with steady cash flow in an extremely active, evolving market.”
“Newmark wisely elevated the Grand2 listing to the international market, with a strategy that attracted strong buyer interest from across the globe. That response speaks both to Newmark’s expertise on the brokerage front and to Phoenix’s rising reputation within the global commercial real estate market. The combination led to a record-breaking office sale, even in the middle of a pandemic,” said David Krumwiede, Senior Executive Vice President for LPC Desert West, the Southwest regional office of LPC.
Developed by LPC, the nine-story, 358,000-square-foot building is located at 1033 W. Roosevelt Way. The property is 100 percent leased to DoorDash, Inc. Features include a rooftop lounge, fitness center, variety of conference rooms, two-story lobby, floor-to-ceiling windows, 24/7 onsite security, seven-level parking structure and immediate light rail access.
Osbrink added, “The Grand2 at Papago Park Center represents exactly what we are seeing most investors look for today–best-in-class real estate in a high-growth, top-tier submarket and location, with strong tenancy. This is one of the top office assets in the entire Phoenix MSA and yet still offers ownership attractive and much higher yields than trophy office in other neighboring gateway markets. We continue to see the trend of first-time buyers entering Phoenix in search of best-of-the-best product and attractive yields with improving and sustainable fundamentals.”
The Newmark team handled the sale of the Grand1 building in December 2019. Both the Grand1 and Grand2 are part of a prestigious, 60-acre project, which upon completion will include 3.2 million square feet of office, multifamily, hotel, retail and restaurant space. Ideally located in the heart of Tempe, the submarket boasts market-leading rents notching $36.63 and a 1.4 percent Class A vacancy rate as of Q3 2020, according to Newmark Research.
[1] CoStar, Real Capital Analytics
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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