Cornerstone Realty Pays $26.1M for Lincoln Commerce Park 2
- May 08, 2012
In a $26.1 million deal, a joint venture of Lincoln Property Co. and Invesco Realty Advisors sold Lincoln Commerce Park 2, a 336,665-square-foot complex in Phoenix, to an affiliate of Cornerstone Realty Advisers L.L.C., Business Real Estate Weekly of Arizona reported.
The 336,665-square-foot, four-building complex is part of Lincoln Commerce Park, which features 550,000 square feet of office, showroom and warehouse space.
Completed in 2007, Lincoln Commerce Park is located at Interstate 17 and 7th Avenue and is 83% occupied. Current tenants include Criterion Brook, Lochinvar, Standard Renewable Energy, United Hospital Service and Southeast Aluminum. Chris Toci of Cushman & Wakefield Inc. and Jeff Conrad and Allen Lowe of Lee & Associates represented Lincoln Property in the transaction.
Lincoln Commerce Park 2 is outperforming the market in terms of occupancy. As of the first quarter, Phoenix’s office vacancy rate stood at 26.1 percent, an improvement of only 0.2 percent year-over-year, according to CBRE Group Inc. On the plus side, Phoenix’s net absorption of 1.9 million square feet ranked fifth in the nation last year, trailing only San Francisco, San Jose, Houston and Dallas.
Phoenix’s miniscule office development pipeline—a single 90,000-square-foot project offers the sole new product in the works—will have little impact on vacancy in the near term. A trend of rethinking strategies for using space has added 320,000 square feet of positive absorption in the Class A and Class C categories and a comparable amount of negative absorption in Class B properties, CBRE noted.