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News release

PHOENIX, AZ

More Than Luck: Superstition Corridor Attracts Buyer for $4.9M JLL Office Asset

Booming medical market, new development making a big impact on submarket


PHOENIXJune 3, 2016 – Strong recovery in the Superstition Corridor contributed to this week's $4.9 million sale of Inverness Commons II, a value-add office asset represented by the Phoenix office of JLL. The 60,960-square-foot building sits within one mile of the U.S. 60 Superstition Freeway and in the heart of the Superstition Corridor, a submarket that over the past 12 months has experienced a significant improvement in vacancy rates as new office and medical users flock to the area.

JLL Senior Managing Director Dennis Desmond represented the property seller, Omninet, in the transaction. The property buyer was G2 Capital. JLL Managing Directors Dave SeegerKarsten Peterson and Mark Gustin serve as the property's leasing team and partnered with Desmond on the sale.

"The Superstition Corridor is an exceptional market for value-add investors," said Desmond. "G2 Capital recognized this early on, and has plans to capture that potential with strategic capital improvements. For a project that sits in the shadow of neighbors like Banner MD Anderson and A.T. Still University, the upside opportunity is significant."

According to JLL, the Superstition Corridor office submarket already this year has achieved 167,833 square feet of total net absorption, with an additional 170,000+ square feet of tenants expected to move in by year's end. This has helped drive direct vacancy down from 27.9 percent in Q1 2015 to 22.4 percent in Q1 2016. It has also helped pushed average rents back above $23 per-square-foot, a rate nearing the $26.15 per-square-foot high water mark achieved in 2007.

"With a 44.4 percent occupancy rate, Inverness is in a prime position to fill its vacant space and maximize the benefits of an improving market," said Desmond. "The 12 neighboring office buildings are currently 82 percent occupied. Surrounding medical office space is operating at more than 87 percent occupied."

Inverness Commons II is located at 5416 E. Baseline Rd. in Mesa, Arizona, between Baseline Road and the U.S. 60, just east of Higley Road. The 2001-built, two-story office building sits on 5 acres, within walking distance to retail and restaurant amenities, and in a medical hub of the Southeast Valley that includes Banner Gateway Hospital, Banner MD Anderson Cancer Center, Phoenix Children's Hospital and the Arizona Health & Technology Park (home to A.T. Still University of Health Sciences).

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. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

In Phoenix, JLL is a market leader employing more than 540 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 2015, the Phoenix team completed 17.2 million square feet in lease and sale transactions valued at $930 million, directed $125 million in project management and currently manages a 16.4 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.