Metro Phoenix Creative Office Sells for $46M
- Jun 25, 2019
Strategic Office Properties, a TPG Real Estate subsidiary, has purchased The Circuit, a 185,000-square foot office property in Tempe, Ariz. EverWest Real Estate Investors and CarVal Investors sold the adaptive reuse project for $46 million. Chris Toci of Cushman & Wakefield worked on behalf of the sellers.
Located at 615 S. River Drive on 16 acres at the intersection of loops 101 and 202, the former manufacturing facility is now a single-floor creative office space. Following a $14 million redevelopment process that took a little more than two years to complete, the 1982-built asset currently houses two national credit tenants. Oscar, a health insurance startup, leases 139,700 square feet and mortgage tools provider On Q Financial occupies the remaining 44,600 square feet.
Amenities at the Gensler-designed building include 17-foot ceilings, 14-foot floor-to-ceiling windows and more than 60 skylights that maximize natural light. The Circuit also features landscaped patios, outdoor entertainment areas and a parking ratio of seven per 1,000 square feet, which is roughly 40 percent higher than other office buildings in the same market.
EverWest has an active track record of office renovations in major markets across the West, including The Quad in Scottsdale, Ariz., which is approximately 8 miles northwest. A Vancouver REIT purchased the 14-building property in 2017.