Phoenix Developer Sells 21,042-SF Office Property to 1031

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TEMPE, AZ-Park Place II, LLC, under the direction of Patrick Althoff of Metro Commercial Properties in Phoenix, has sold the 21,042-sf Tempe Parkside, a class A garden office complex for $4.5 million, at a cap rate of 7.16%. The initial ask was $4.4 million.

The property, located at 3920 S. Rural Rd., was part of a 1031 exchange on the part of the buyer, Cook-Russell Stanley, Ltd. Partnership in Scottsdale. According to Andrew Fosberg, an associate with CB Richard Ellis Co.’s Phoenix office, the 2004-constructed property was 100% leased at the time of sale, with tenants including Keller Williams, Wells Fargo and Security Title Agency.

“We listed the property for about three weeks and had about four or five offers,” Fosberg tells GlobeSt.com. He adds that the buyer, who had just sold an office building in Scottsdale, had the funds for purchase, and was willing to assume the building’s loan. In addition, “he came up with a good price offer,” Fosberg says.

Details of the loan assumption were not available by press time. Fosberg, along with CB Richard Ellis colleagues Steve Fernandez, Jenifer Lunt and Claudia Jara, represented both parties in the transaction.