Arizona Office Buildings Change Hands in $69M Deal
- Jan 23, 2018
Transwestern Investment Group has sold Lincoln Towne Centre, a 226,358-square-foot office complex located at 4150-4250 N. Drinkwater Blvd. in Scottsdale, Ariz., on behalf of its TSP Value and Income Fund I LP, to GLL Real Estate Partners for a reported $69.1 million.
Eastdil Secured represented the seller in the transaction.
The property, featuring a unique “wedding cake” design, consists of two mid-rise, Class A office buildings, as well as four-story subterranean parking with a ratio of 4.1 spaces per 1,000 square feet. The buildings boast expansive balconies and patios on upper floors providing unobstructed views of downtown Scottsdale.
TIG originally acquired the complex in 2015 from Equus Capital Partners Ltd. for $58.5 million. That year, TIG performed an extensive renovation and modernization of the asset, which was originally built in 1999. Upgrades included a $1.5 million remodel of the building lobbies, subterranean common areas and select corridors and restrooms.
Situated at the intersection of Drinkwater Boulevard and Indian School Road, Lincoln Towne Center offers great access to the Loop 101. The property is located directly across from the Scottsdale City Hall, close to the nearly 2 million-square-foot Scottsdale Fashion Square, as well as the Scottsdale Waterfront development and numerous retail amenities, restaurants and hotels.
The complex was 92 percent leased at the time of the sale.
Transwestern provided management and leasing services for the property, led by Bill Zurek and Jim Achen, senior vice presidents of the company.
In August, TIG appointed Charles Hazen as president, and he has spent the last five months concentrating on the strategic direction, investor relationships and operational activities for all of TIG’s business units.
GLL now currently owns more than 550,000 square feet of high-quality office space in the Phoenix metro area.
According to Colliers International’s most recent Greater Phoenix Office Report, average asking rents in Scottsdale South recorded prices above $30 per square foot in 2017, with annual rent increases of approximately 4 percent in 2017.
Image courtesy of Transwestern Investment Group