American Realty Advisors Sells Phoenix Office/Data Center Property
- May 29, 2015
Acting on behalf of a pension fund client, American Realty Advisors recently raked in $91.5 million on the disposition of a 513,400-square-foot office and data center property in Phoenix. American Realty sold the two-building property, fully occupied by American Express Travel Related Services Company Inc., to Griffin Capital Corp.
Carrying the addresses of 3151 and 3202 West Behrend Dr., the approximately 15-year-old, low-rise office and data center complex occupies nearly 29 acres in Phoenix’s Deer Valley submarket. The 213,400-square-foot, Class B office building at 3202 Behrend fetched $33.5 million, while the premier 300,000-square-foot data center at 3151 commanded $58 million.
The key draw of the asset is its tenancy. American Express occupies both buildings in their entirety under a lease that is scheduled to expire in July 2023; the lease agreement offers four five-year renewal options. “This asset was poised for strong investor interest, based on the long-term commitment to the property demonstrated by American Express,” Stanley Iezman, CEO of American Reaty Advisors, noted in a prepared statement.. “This resulted in an attractive property with a stable rent roll to market to investment groups.”
The complex currently yields a total of approximately $5.8 million in annual base rent.
Additionally, the data center segment of the property proved irresistible to hopeful buyers. “Several major data centers are located in the Phoenix market, based primarily on the region’s skilled workforce, affordable power, and low rate of natural disasters,” Iezman added. “This particular data center competes on both a national and international level, making the asset even more attractive to investors.”