X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-A limited liability company from San Diego has entered the Greater Phoenix arena with its buy of the 132,500-sf, four-building Metrocenter Business Park on the north side. The buyer has shelled out $17.6 million for the class B office park.

According to Matt Kelly, vice president with Burnham Real Estate/ONCOR International in San Diego, Metro Office LLC liked the 87%-occupied class B office park at 10000 N. 31st Ave. near Interstate 17 for the upside potential and leasing scenario. “There are a few expirations coming up and they’re able to renew those tenants,” says Kelly, who represented the buyer.

Also, the new owners expect to benefit from a growing demand for office space north of the Downtown since its goal targets professional service and small businesses as prospective tenants for the remaining space. Currently, the roster includes Collis & Associates, which provides public policy services to public and private sector clients; Guardsmark Inc., a security firm; and dental practice and psychiatric counseling group. Lease rates are quoted at $17 per sf, gross.

Kelly tells GlobeSt.com that the partnership will do minimal repairs on the infill asset and hold it for the long term. “They’ll do a little TLC on it, but it’s in good shape otherwise,” he says, adding that the buyer will manage the property.

The seller, Roth Development Corp., built the center in the late 1980s. Kelly says the seller plans to move his capital into other areas. In the meantime, Metrocenter’s buyer is actively looking for additional investments in the area, setting its sights on multi-tenant office and industrial properties.

Burnham senior vice president Tucker Hohenstein partnered with Kelly on the buy side. Kim Soule, vice president with Colliers International Inc. in Phoenix represented the seller.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.