Menlo Equities Acquires Phoenix Office for $52M
- Jun 24, 2019
An affiliate of Menlo Equities has purchased an office building fully occupied by Wells Fargo in Tempe, Ariz., for $52.4 million. The private real estate investment firm has acquired the property within Papago Park Center from Greenwood & McKenzie.
Built in 2004, the three-story, 214,303-square-foot asset changed hands for $244.51 per square foot. The property is located at 1150 W. Washington St. in the city just east of Phoenix. An NKF team consisting of CJ Osbrink, Kevin Shannon, Paul Jones, Ken White, Rick Stumm, Brunson Howard and Mike Garlick represented the seller in the marketing and sale of the asset. The buyer was self-represented.
Papago Park Center is a roughly 500-acre, mixed-use development comprising 2.6 million square feet of office space, existing and under construction. Investors have poured $67.3 million into office product in the area over the past 24 months, according to NKF research. Demand from science, technology, engineering and math (STEM) and finance, insurance and real estate (FIRE) firms has pushed average class A rents to a historic high of $32.69 per square foot in the precinct.
Lincoln Property Co. is developing 1.8 million square feet of Class A office space in the area, having topped out its second building, the 352,000-square-foot The Grand at Papago Park Center 2, in March.