CHANDLER, AZ-A thriving submarket has prompted developer Boyer Co. of Salt Lake City to sell its eight-year-old, 100%-leased Chandler Office Center. Following a long escrow period, the class A, 108,129-sf center was acquired by Chandler Arizona Properties LLC of St. Paul for $20.25 million.

Chandler Office Center is positioned at 55 N. Arizona Place on 2.25 acres of city-owned land that’s secured by a long-term ground lease. The building attracted a great deal of interest from national institutional investors, as well as local groups. “We ended up with a lot of offers for the property and went into a best and final,” says Dennis Desmond, senior vice president with Trammell Crow Co.’s Phoenix office, who represented the seller. He says the deal took some time to close because of a loan assumption, the details of which he can’t discuss due to the confidentiality agreement.

“The City of Chandler, particularly downtown Chandler, has really grown and become very visible to the institutional investment community,” Desmond tells GlobeSt.com. “When the property was first built, the response would have been ‘where is Chandler?’ But that’s not the case any more. The city’s come into its own. I didn’t have to explain to anyone where the building was.”

Desmond says that the St. Paul company ultimately got the nod to buy because it offered one of the highest prices for the building. “They were a known entity to the seller’s group,” he adds. “They own other property here in the Valley, are known to be performers and have a real good history here.”

The city and Western International University have long-term leases for the building, which is being managed by Arizona Commercial Management. Besides Desmond, the TCC team included senior vice presidents Bob Burnand, Dave Seeger and Karsten Peterson, vice president Mark Gustin and senior associate Nathan Thinnes. The buyer was self-represented.

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