May 23rd, 2014 — M. Gregory Moore, President and CEO of the Kan Am Group America, completed the sale of the American Express Service Center in north Phoenix for $51m, which equates to $143.18 per assessed square foot or $151.13 per net rent-able square foot. Joseph Miller, CFO of the Griffin Capital Essential Asset REIT, was signatory for the buyer in the all cash deal. Vizzda previously reported on Griffin Capital’s acquisitions of the Avnet, Inc. Global Solutions Center in Chandler.
The 356,192 ft2 office complex is located west of the southwest corner of the I-17 and Loop 101 freeways. It is comprised of two five-story buildings of 178,096 ft2 each, built in 1988 on a 24.59 acre campus, zoned CP/BP. The property is fully occupied and currently serves as a call center for American Express. Per SEC documents, the lease agreement with American Express has a firm term that expires on November 30th, 2014. It was acquired by Kan Am in 2007 as part of a portfolio sale with Inland Western Retail Real Estate Trust.
The prior acquisition was one of four properties conveyed between Inland Western and Kan Am in December of 2007. The properties were fully occupied at the time of sale by American Express. The properties were located in Phoenix, Ontario, Minneapolis and Fort Lauderdale and totaled over 1.56m ft2. They were acquired for a total transaction price of $270.8m or $173.58 per ft2. The Phoenix property was acquired for $60.825m or slightly less than a quarter of the total transaction and included assumption of an existing $31.86m CMBS note.