PHOENIX—Merced Restart Phoenix Investors I, LLC purchased for $24.9 million Camelback Arboleda, a 178,792-square-foot, multi-tenant office building located at 16th Street and Camelback Road, in the heart of Phoenix's Camelback Corridor. The seller was Camelback 1661, LLC. The Phoenix office of JLL completed the sale.
JLL senior managing director Dennis Desmond and JLL senior vice president BrianAckerman represented the property seller. This is the second time in two years that JLL has brokered a Camelback Arboleda sale—an indication, JLL says, of the market's ability to deliver upside potential for strategic buyers.
“Investor interest in the Phoenix office market has increased dramatically since 2011-2012,” says Desmond. “Our client recognized the opportunity in this trend, and significantly improved the appearance of Camelback Arboleda and the quality of its rent roll to take advantage of improved investor appetite.”
“The property also has attracted an increasing amount of medical tenants seeking a quality location in a tightening market, creating another stabilizing factor in the positioning of this asset,” says Ackerman.
Camelback Arboleda's leasing team, Chris Latvaaho and Michael Crystal of Cushman & Wakefield, assisted with the transaction and will retain the leasing assignment for the new owner.
According to JLL's Q1 2014 Phoenix Office Report, rental rates in the Camelback Corridor submarket have grown significantly in the past two years, from an average $23.77 per square foot in early 2012 to an average $25.12 per square foot.
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