Located at 2415 E. Camelback Rd., the nine-year-old tower is part of a 22.5-acre mixed-use development that includes four other office towers with retail components [Esplanade I, II, IV and V], a hotel, theater complex and condominium tower.
Esplanade III was at 60% occupancy when the seller purchased in November 2004. "The seller had originally bought it a year ago as a long-term hold, but due to a rent spike in the market, and the demand, it leased up quickly. Rents have moved by more than $5 per sf in that time," Phillip J. Marino, principal of Phoenix-based Intercon West Realty Advisors, tells GlobeSt.com.
Marino, the referring broker for the deal, says Esplanade III was marketed about 45 days as an un-priced offering. "There were many offers, in excess of 10," he says.
Esplanade III's sister towers commanded high rates on the 2005 sales front, with Metropolitan Life Insurance Co. of New York City paying more than $155 million for I and II during a fierce bidding war in the spring and then following up in the fall with the $162.5-million purchase of IV and V.
Marino says the Boston-based AEW won't have to worry about upgrades on the property. "This building is in perfect condition," he adds.
Adam Edwards and Dan Broderick with Secured Capital Corp. in Southern California and Larry Downey and Jerry Jacobs with Cushman & Wakefield of Arizona Inc. in Phoenix represented the seller. AEW was self-represented in the transaction.
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