CAMCO Investment Buys Greater Phoenix Office Landmark
- Apr 09, 2021
Dallas-based CAMCO Investment Group has purchased The Mesa Tower, a 16-story, 311,949-square-foot office building in the Fiesta District of Mesa, Ariz. The joint venture of Barker Pacific Group and Iron Point Partners sold the Class A asset for $39.5 million with the assistance of CBRE. CommercialEdge information shows the property previously traded in 2017 for $23 million.
Formerly known as Bank of America Financial Plaza, the landmark office tower rises at 1201 S. Alma School Road on a 6-acre lot within a qualified Opportunity Zone. Completed in 1986 and most recently renovated in 2019, the property also includes a five-level above-grade parking structure with a ratio of 3.5 spaces per 1,000 square feet. Upgrades feature improvements to the lobby, common areas and interior building systems, as well as the addition of several spec suites.
According to CBRE, the building was 85 percent leased at the time of sale to a diverse mix of tenants. First Vice President Will Mast said in a prepared statement that the tower was one of the best performing Metro Phoenix office assets during the COVID-19 pandemic, with more than 40,000 square feet of new leases and expansions signed in 2020.
The Mesa Tower is roughly 3 miles southwest of downtown Mesa within the Superstition Corridor submarket, just north of U.S. Route 60 and across from Fiesta Mall, the abandoned 1.2 million-square-foot property slated for redevelopment.
Mast worked together with First Vice President Chris Marchildon and Executive Vice Barry Gabel in negotiating the deal on behalf of the seller.
Greater Phoenix office action
Aside from a consistent office construction activity, Greater Phoenix has also witnessed several office transactions during the first quarter of 2021. Roughly 1.7 million square feet of space across 16 properties changed hands for an aggregate $347 million, according to CommercialEdge data.
One of the largest transactions involved PetSmart Headquarters, a three-building, 365,672-square-foot property in Phoenix. BPM Real Estate Group acquired the asset for $110 million.
Also in Phoenix, TerraCap paid $103.5 million for Anchor Centre, a two-building, 333,014-square-foot office property. The seller, KBS, had purchased the asset in 2014 for $85.1 million through its KBS REIT III.