By: Paul Dionne | Vizzda.com
The Stapley Corporate Center in Mesa has sold to Buchanan Street Partners for $32.5m or $180.48 per net rentable square foot. The all-cash transaction brings Buchanan Street Partners to $85.1m in Phoenix-area acquisitions in the last ten months, following their purchase of four office, flex and retail properties for $52.6m in September of last year. The seller was St. Louis-based real estate developer, The Desco Group, who originally developed the property. This sale marks Desco’s exit from the project, having already sold two other properties on site.
The 180,067 net rentable square foot complex is comprised of two 2-story buildings built in phases in 2005 and 2007 on a 14.08 acre campus. The complex is located south of the southwest corner of US-60 and Stapley Drive and features 2-story lobbies, a parking ratio of 5 spaces per 1,000 ft2 and 15,000 ft2 of onsite retail amenities—which do not convey with this sale. According to marketing materials provided by Cushman & Wakefield, the property is 93% occupied with 52% roll over in the next five years and asking rents of $24.95 per square foot.
The property was acquired by Desco as 17.46 acres of vacant land in 2004 for $5,413,104 or $7.11 per square foot. Desco paid cash for the acquisition and shortly thereafter encumbered the property with $31.193m in new construction debt with Lasalle Bank, comprised of a $22.297m “Phase I Note” and a $8.896m “Phase II Note”, this note was modified several times and finally refinanced with a $29.3m term loan with Wells Fargo. Prior to refinancing, Desco developed and sold a 13,860 ft2 inline retail building to the southeast of the subject for $6.528m and 1.77 acres of vacant land adjacent to the south for $2,321,460.
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