Hines Sells 300 KSF Green Building in Phoenix

In the city's largest office deal so far this year, an affiliate of New York Life Real Estate Investors acquired an eight-story asset in the Camelback Corridor.
24th at Camelback I
24th at Camelback I

An affiliate of New York Life Real Estate Investors has acquired 24th at Camelback I from Hines, in the largest office sale in the city so far in 2018. The eight-story, LEED Gold office property in Phoenix changed hands for $100 million. At the time of sale, the asset was 95 percent leased. Hines was advised by CBRE and Fijan Advisors on the sale. 

“This transaction is in-line with our company philosophy to be the best investor and maximize returns for our partners,” Chris Anderson, Hines’ managing director & city leader, told Commercial Property Executive. “During Hines’ recent ownership, we invested significant capital to upgrade the campus amenities and parking.” 

Core location

The Camelback Corridor is a core office location with access to walkable amenities, a central location for employers, and easy access to Valley transportation corridors.

According to Anderson, the Phoenix economy is performing well and the property’s location made it an attractive acquisition target for many. “Job growth in Phoenix continues to be one of the best in the nation, and the office vacancy rate continues to trend down which is a good time to sell to institutional buyers,” he said. “24th at Camelback is located in a core location and the building was 95 percent leased to strong credit tenants.”

Completed in 2000 and designed by Pickard Chilton, the building consists of 302,209 square feet of office space, including nearly 3,700 square feet of ground-floor restaurant space. Hines, which acquired the asset back in 2012, recently finished nearly $1 million in renovations and improvements at the 24th at Camelback campus.

The Hines portfolio currently has about $111 billion of assets under management, including $60 billion for which Hines provides fiduciary investment management services, and $51 billion for which Hines provides third-party property-level services.  

In May, Hines expanded its portfolio with the addition of self-storage facilities. Sometime this summer, the firm is set to break ground on Val Vista Self Storage, a 75,000-square-foot, Class A storage development in Gilbert, Ariz.

Image courtesy of Hines