X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-New York City-based ING Clarion Partners has decided to sell the Esplanade I and II, a pair of trophy towers in Camelback Esplanade and positioned at the heart of the Valley’s financial district.

Situated on 3.9 acres near the intersection of Camelback Road and 24th Street, the 11-story towers are comprised of 469,587 sf of office space and 52,793 sf of first-floor retail space. Esplanade I, located at 2425 E. Camelback Rd., was built in 1989 and its near twin, Esplanade II at 2525 E. Camelback Rd., rose in 1990. Both towers are linked to a four-story parking garage.

“These class A trophy assets will attract a variety of interest ranging from off-shore money to private money to institutions and real estate investment trusts,” says Chris Toci, a senior director with Cushman & Wakefield of Arizona Inc. “I wouldn’t be surprised if [the buildings] reach $150 million.” He is partnering with C&W’s Jerry Jacobs and Larry Downey to sell the buildings for ING Clarion.

Toci tells GlobeSt.com that he expects to receive more than 20 offers for the towers. “There won’t be another sale this big in Phoenix for another 10 years,” he says.

ING Clarion purchased the towers, developed by Opus West Corp., in 1997, for $167 per sf or $87 million. The towers are 94% occupied by tenants like locally based Vestar Development Corp., MCI, local law firms Cohen, Kennedy, Dowd & Quigley and Tiffany & Bosco PA and Piper Jaffray Cos.

“There’s no near term roll and mid-term upside since the in-place rents are below market,” Toci says. Rents range from the mid to high $20s.

Toci says the five-building Camelback Esplanade is 95% occupied. The only large block of contiguous space is in the 10-story, 217,548-sf Esplanade III, which is 65% leased. Earlier this year, 4501 Northpoint LP, a fund managed by Prudential Real Estate Investors of Parsippany, NJ sold Esplanade III for $51 million to Chicago-based Hearn Co.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.