New JV Swaps $18.8M for Pinnacle Peak Deed

"It's a good solid building in an area that is growing quite rapidly," Mike Beall, with Cushman & Wakefield of Arizona Inc., tells GlobeSt.com. The buying partnership is comprised of Main Street Capital Partners of Phoenix and DRA Advisors Inc. of New York City.

The 2155 W. Pinnacle Peak Rd. property, developed in 2001 by the Alter Group of Skokie, IL, as a build-to-suit for Chubb Insurance, is 80% occupied by the insurance firm, which holds a 10-year, triple-net lease. The remaining office space is available for lease at $21.50 per sf, full service.

Beall said even though the class A property was not on the market, Main Street Capital and DRA Advisors made an offer which the Alter Group "found attractive," setting the stage for the sale. The buyer "looked at this building as being in an area with a lot of positive growth," said Beall. "Since the building was anchored by Chubb, it was a long-term risk which gave them additional value to create on the leasing of the building." He said several tenants have already expressed interest in leasing the property, located at Pinnacle Peak near Interstate 17 in one of the fastest growing areas of the Valley.

The sale marked the first Valley purchase for newly formed Main Street Capital Partners. The company owns about 1.8 million sf of office and industrial space in Arizona, Florida, North Carolina and South Carolina.

Beall, who will serve as the property's leasing agent along with Cushman & Wakefield's Tim Whittemore, was assisted in the transaction by Warren Johnston, also with Cushman & Wakefield of Arizona. Both brokers represented the buyers in the transaction. The seller was self-represented.