Phoenix Buyer's $17M Offer Wins Concord Place Prize

Buyer Hannay Investment Properties of Phoenix won ownership of Concord Place, a six-story, 131,099-sf building with an offer just $1 million shy of the asking price. The property at 2999 N. 44th St., once part of a much larger portfolio, was the last holding here for Presidio Investments of Dallas.

"It's an absolutely spectacular building," Glenn Smigiel with CB Richard Ellis Inc.'s Phoenix office tells GlobeSt.com. "It's just beautiful."

The building has a grand staircase rising from the entryway, a 10,000-sf koi pond and fountain out front and dark-wood tenant finishes inside. But it is the building's domed shared conference area, replete with a Sistine Chapel-like mural by Navajo artist David Johns depicting the Indian story of creation, that makes it unique. For smaller gatherings, a side conference room with a fireplace is a favorite wedding spot on weekends.

Smigiel says the building's unparalleled upgrades made it a highly sought-after commodity in the Valley's hot office market, sparking bids from at least 15 prospective buyers. "It truly is one of the nicest buildings in Phoenix," he says.

Hannay Investment Properties thought so too, but it wasn't only the building's design that brought in the bids. Smigiel says the new owner saw the property's 25% vacancy rate as an opportunity to cash in on an expected rise in rents as the Valley's market continues an upward momentum. Currently, tenants at Concord Place, including several consulting, legal and financial firms, pay about $21 per sf for the building's premier office space.

Smigiel along with Bob Young, Steven Brabant, Rick Abraham, Jim Fijan and Jerry Roberts, all with CBRE, handled the deal for Presidio. Hannay was self-represented in the transaction.