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News release

PHOENIX, AZ

Prime DC Ranch Office Development Sold for $18.7 Million

JLL completes sale of top tier, Class-A cornerstone project


PHOENIX, March 6, 2015 – On behalf of Arizona-based DMB, the Phoenix office of JLL has completed the $18.7 million sale of Canyon Village, a Class A mixed-use office project and cornerstone development within the DC Ranch masterplanned community in Scottsdale, Arizona.

JLL Senior Managing Director Dennis Desmond and Senior Vice President Brian Ackerman represented the property seller, Canyon Village LLC (an entity of DMB), in cooperation with DMB Vice President of Development Michael Burke and Director of Leasing and Sales T.A. Shover.

The team was assisted by Alfred Hackbarth, retail investment expert and Senior Vice President of SRS Real Estate Partners, and by JLL office leasing experts, Managing Director John Bonnell and Vice President Brett Abramson.

The buyer is Laurus Corp., a Los Angeles-based private real estate investment and development firm.

“As a DMB-built project, Canyon Village carries an unwavering quality and value in a niche location. There is no other office property quite like it in North Scottsdale,” said Desmond. “This buyer purchased Canyon Village knowing that Class A office space in Phoenix is coming back very strong and very quickly. They have tremendous confidence in that recovery and in this superior asset.”
Totalling 93,890 square feet on 5.6 acres, Canyon Village includes four buildings and an adjacent 289-car parking structure. It is located at 18801, 18835, 18867 and 18899 N. Thompson Peak Pkwy. in Scottsdale, on the northeast corner of Thompson Peak Parkway and Legacy Boulevard, and in the heart of DC Ranch, an 8,800-acre masterplanned community situated at the base of the McDowell Mountains. It is just five minutes from the Loop 101 freeway.

Canyon Village is primarily home to office tenants, but also includes high-end medical office, retail and restaurant users such as Ciao Wine Bar & Bistro and The Village Health Club’s hot yoga studio. It is an immediate neighbor to the award-winning DC Ranch Village Health Club and Spa, and Silverleaf, a 2,000-acre private residential community boasting high desert canyons, a world-class golf course, limited custom homesites starting at $1 million and ranging from 1 to 15 acres, and luxury homes from $1 million to more than $7 million. The 2014 median home value within a one-mile radius of Canyon Village was $608,782 – a more than 300 percent difference from the $195,930 2014 median home value for all of metro Phoenix.

“It is rare to find all of these amenities in one location – a landmark site, a highly designed formal Mediterranean environment, almost unrivalled access to executive housing and decision makers, a highly educated labor pool and meticulous property management,” said DMB Vice President Mike Burke. “We took all of these factors into consideration when building Canyon Village, laying a strong foundation for a long-term success story.”

At the time of purchase, Canyon Village was 75.9 percent leased, with expectations that this figure will increase quickly as development continues around the site and the Phoenix office market enjoys a sustained recovery.

According to JLL research, the subset of Phoenix’s Class A office space is significantly outperforming all other office classes. As of year-end 2014, the Class A vacancy rate was 18.7 percent (compared to 21.4 percent Valley-wide) and accounted for 60 percent of the year’s total net office space absorption.

About DMB
For over thirty years, DMB has earned a national reputation for creating some of the most iconic communities in the West, including Centerpoint on Mill in Tempe, DC Ranch in Scottsdale and Verrado in Buckeye, just to name a few. DMB strives to achieve enduring business success by creating extraordinary new environments that enrich people’s lives, are appreciated and rewarded in the market and have a positive impact on the larger community of which they are part. For more information, visit www.dmbinc.com.

DMB commercial specializes in strategically shaping and developing properties within DMB’s portfolio of planned communities featuring retail, office, hospitality and other mixed-use components. DMB’s commercial portfolio has included Market Street at DC Ranch (within DC Ranch in Scottsdale, AZ), Eastmark (Mesa, AZ), The Shops at Kukui’ula, (Kauai, HI), Main Street at Verrado, (Buckeye, AZ), Centerpoint on Mill (Tempe, AZ) and One Scottsdale (Scottsdale, AZ).

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $53.6 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Phoenix, JLL is a market leader employing more than 500 of the region’s most recognized industry experts offering office, industrial and retail brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services. In 2014, the Phoenix team completed 12.2 million square feet in lease transactions valued at $918 million, directed $75 million in project management and currently manages a 23.1 million-square-foot portfolio. For more news, videos and research resources on Jones Lang LaSalle, please visit www.jll.com or www.jll.com/phoenix.