AZ Office Campus Commands $63M
- Feb 26, 2019
Oaktree Capital Management has acquired Rio West Business Park, a 296,663-square-foot asset in Tempe, Ariz., for $63.4 million. The buyer completed the transaction through one of its managed funds.
Executive Directors Tracy Cartledge, Steve Lindley and Bob Buckley of Cushman & Wakefield’s Phoenix office represented the seller, a joint venture between The Wolff Co. and Leavitt Capital Cos. Per Yardi Matrix, the new owner has assumed two notes totaling $41.5 million in existing CMBS financing, both maturing in 2026.
Located at 1621-2021 W. Rio Salado Parkway, the five-building property is fully leased, with four of the five buildings occupied by American Airlines. Rio West Business Park is 2 miles from Tempe’s Mill Avenue district and almost 4 miles from Phoenix Sky Harbor International Airport. The location provides access to major thoroughfares including Loop 202 and State Route 143, with downtown Phoenix less than 10 miles away.
The Phoenix metro has seen consistent office market growth due to strong economic and population gains, according to the Yardi Matrix seasonal outlook. The market has attracted major companies such as Uber and financial technology firm Upgrade, while large office-using employers including Deloitte and Bank of America are expanding in the area.
“Rio West is the desirable asset profile we look for when deploying capital in our real estate strategy—high-quality stable tenant base, modern office product without competition from new supply and located in one of the best submarkets within a high-growth market in which we have significant investment experience,” said Mark Jacobs, managing director & co-portfolio manager of Oaktree’s Real Estate Income strategy, in a prepared statement.
Image courtesy of Cushman & Wakefield
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