Four Office Towers of "The Esplanade" Sell for $279 Million

Area Map

Metropolitan Life Insurance Company has sold towers I, II, IV, & V of "The Esplanade" for $279 million, or $289 per square foot. Buying entity traces to LBA Realty and Clarion Partners, who funded the sale with over $158 million in new debt with Wells Fargo Bank.

Transacting in this sale is a ±966,000 square feet of class A office in four ten and eleven-story buildings. The Esplanade is located east of the southeast corner of 24th Street and Camelback Road in Phoenix, across the street from the Biltmore Fashion Park.

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Clarion Partners Purchases Six Industrial Properties in Portfolio Totaling $80 Million

Area map of Valley West II, the largest of these six industrial properties

New York-based Clarion Partners have purchased six industrial properties in Maricopa County on Friday for a total of $80 million or $62 per square foot. The assets, which are located in Gilbert and Phoenix, were sold by Myron Zimmerman Investments of Oakland California. The total acquired building area is 1,293,509 square feet and includes The Continental Tech Center, El Dorado Tech Centers I,  II & III, Valley West I & II, and The Papago Distribution Center. No new debt was recorded.

For more information on this property including complete history of all six properties as well as buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!

        


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Desert Troon Re-Purchases North Scottsdale Trophy Asset

Perimeter Gateway I

VIZZDA--December 18th, 2013 -- Desert Troon Companies is once again the owner of the Perimeter Gateway I office building complex. Troon had owned the North Scottsdale trophy asset until November 23rd, 2011 when the special servicer for the $44m CMBS note encumbering the property foreclosed. The subsequent bank sale was for $26m or 116.31 per square foot.

The 223,537 square foot flex office complex was developed by Koll Development, who commissioned Butler Design Group as architect and Hardison-Downey Construction as the contractor. The project consists of three, two-story buildings built 2001--with an additional cafe building built in 2007--on 10.80 acres zoned I-1/PCP. The two office buildings total ±110k square feet each. The third building is a two-story café building.

There are two current tenants occupying 47% of the complex: 

• T-Systems North America occupies 51,581 square feet and their lease is set to expire in December 31st, 2014
• North Central University occupies 54,213 square feet and their lease is set to expire in August 31st, 2018.

The property was entitled by the city of Scottsdale in 2000, then developed by Koll in 2002. The Koll Development and Clarion Partners joint partnership sold the completed property to Desert Troon on May 30th, 2003 for $40.2m, or $173.84 per square foot, and $32m new CMBS debt with Morgan Stanley. 

Subject Property

The $32m note was released, and $44m new debt with Artesia Mortgage Capital was issued on October 13th, 2006. At the issuance of this debt, DHL was occupying 100% of the buildings rentable space, and the site was appraised at $57m. In 2003, it was reported that at least 106,169 square feet of the DHL leased space was to expire on June 30th, 2012. The new note was securitized July 12th, 2007 and assigned to CW Captial as special servicer for Wells Fargo Bank. 

Constructive notice was given on August 5th, 2011 for the $44m note. The property reverted to CW Capital, as trustee for the registered holders of the CMBS debt, on November 23rd, 2011 with a $26m credit bid amount. At that time, however, Troon remained the property manager on the site and retained the four surrounding buildings that make up the 5-building, ±540k square foot office complex known as Gateway 101.

By:

Daniel Alpers

Vizzda.com