Equus Capital Sells 345 KSF Office in Scottsdale
- Jan 07, 2019
A joint venture between Oaktree Capital Management LP and Cypress Office Properties has acquired Raintree Corporate Center in Scottsdale, Ariz. Equus Capital Partners sold the 345,417-square-foot, multi-tenant office property for $91.7 million.
Located at 8800 and 8888 E. Raintree Drive, the institutional-quality office project sits on a little more than 11.6 acres and was constructed between 2007 and 2008. The asset features two three-story office buildings and a six-level parking garage. It also offers on-site amenities such as a deli/restaurant and fitness center.
The property was 90 percent leased at the time of the deal. Its tenant roster includes Meritage Homes and The Hartford.
“Raintree fits 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 location in one of the best submarkets within a high growth market,” Mark Jacobs, Oaktree Real Estate’s managing director & co-portfolio manager, said in prepared remarks.
Newmark Knight Frank’s team of CJ Osbrink, Kevin Shannon, Ken White, Brad Burton and Paul Jones arranged the sale on behalf of the sellers.
“Raintree Corporate Center offered new ownership an opportunity to acquire a highly amenitized and institutionally owned and managed office project with attractive going in yields and realistic short-term and long-term embedded value,” Osbrink said in a prepared statement.
A submarket to watch
Raintree Corporate Center is situated in the Scottsdale Airpark submarket, considered one of the more desirable areas in the greater Phoenix MSA. The campus is within a mile of the TPC Scottsdale Golf Courses, which hosts the world-renowned Waste Management Phoenix Open, and only a half mile from the Scottsdale Airport. It also offers direct access to and visibility along the Pima Freeway, which sees more than 160,000 vehicles per day.
According to Cushman & Wakefield’s latest Phoenix market report, the overall average asking rate in the metro Phoenix office market was $25.43 per square foot in the third quarter of 2018, a $0.15 increase from the previous quarter. The Scottsdale Airpark submarket currently has a 14.8 percent vacancy rate and is commanding rents of approximately $28.63 per square foot.
Earlier in January, Equus acquired Lincoln Legacy One, a 207,834-square-foot Class A office building situated in the mixed-use park known as Legacy Town Center in Plano, Texas. In December, Equus acquired the Highlands Campus Tech Centre, a three-building office and flex complex in Bothell, Wash., for $38.1 million from Investcorp.
Images courtesy of NKF