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Team anticipates up-tick in occupied, stabilized Phoenix-area “buy” opportunities
PHOENIX, January 2, 2013 – Beginning the year on a positive note, the Phoenix office of Jones Lang LaSalle has completed the sale of Papago Spectrum to German-based investor GLL Real Estate Partners. According to Jones Lang LaSalle (JLL), the sale of the 159,764-square-foot Class A multi-tenant office building points to continued optimism for buyer interest and activity in 2013.
“Investors see tremendous promise in the Phoenix commercial office market,” said JLL Senior Managing Director Dennis Desmond, who with Senior Vice President Brian Ackerman served as the property’s exclusive listing brokers. “We have a strong inventory of well occupied, stabilized opportunities and—for good reason—buyers from across the globe have an overarching interest in placing capital here.”
GLL was represented internally by Senior Vice President Christopher Quiett and Senior Associate Eric Ramm.
Papago Spectrum sits at the geographic center of the Phoenix metropolitan market, at Priest Drive and University Drive, just off of the Loop 202 Freeway in Tempe, Ariz. The building is currently 91 percent occupied, with the University of Phoenix taking the top two floors of the project and recent leases filling an additional 27,000 square feet in five-year deals.
“Close proximity to Arizona State University and a strong local employment pool ensures that vacancy rates around Papago Spectrum are almost always in the single digits,” said Ackerman. “However, submarket rents are also still slightly depressed. With this building’s strong occupancy, it makes for a very stabilized core asset with solid room for improvement.”
According to JLL’s 2013 Outlook report, Phoenix office leasing velocity and stability is forecasted to improve and bring positive gains well into the first half of 2013. This is based on factors including, but not limited to:
Similar transactions by the JLL Phoenix office include the $20.8 million sale of Scottsdale Centre, a 164,000-square-foot building on Scottsdale Road near Camelback Road; the $16.6 million sale of Camelback Arboleda, a 179,751-square-foot, multi-tenant office building located at 16th Street and Camelback Road, in the heart of Phoenix’s prestigious Camelback Corridor; and the $23.3 million sale of Agave Center, a 27-acre mixed-use property at Warner Road and Interstate 10 in Tempe, Ariz. that includes four office buildings, a flex industrial building and 4.6 acres of land ready for development.
Jones Lang LaSalle is a leader in the Phoenix commercial real estate market. Employing nearly 400 of the region’s most recognized industry experts, the firm offers office and industrial brokerage, tenant representation, facility and investment management, capital markets and development services. In 2011, the Phoenix team completed 5.2 million square feet in lease transactions valued at $337 million, directed $56 million in project management and currently has 15.8 million square feet under management. For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center webpage.
About Jones Lang LaSalleJones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.
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