Ryan Cos. Gets $55M for Phoenix Office Asset

The LEED Gold building in the Camelback Corridor sold for a record $306 per square foot.
3900 Camelback Center
3900 Camelback Center. Image courtesy of Newmark Knight Frank

Ryan Cos. has sold 3900 Camelback Center, a Class A, 177,520-square-foot office building in Phoenix. Los Angeles-based Wilshire Capital Partners paid $54.5 million for the asset. According to Yardi Matrix data, the sale was also subject to a 10-year, $37.5 million loan originated by Morgan Stanley. Newmark Knight Frank represented the seller and secured the financing for the buyer.

The office asset traded for $306.44 per square foot, 44 percent higher than the average sale price for Class A Phoenix office properties in the first half of 2019, per a recent Yardi Matrix report.

Completed in 2008, 3900 Camelback Center is one of only four LEED Gold or Platinum office buildings in the Camelback Corridor. Floorplans range from 49,000 to 66,315 square feet and the property ofers more than 700 parking spaces. Tenants include NOVA Home Loans, Bright Mortgage Group and Shamrock Foods.

NKF Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director C.J. Osbrink, Executive Managing Directors Paul Jones, Ken White and Brunson Howard, and Senior Managing Director Rick Stumm represented the seller in the deal. NKF Vice Chairman David Milestone and Senior Managing Director Brett Green facilitated the acquisition loan for the buyer.

A highly active office submarket

Situated at 3900 E. Camelback Road, the three-story building is just south of the Arizona Canal Trail in the Camelback Corridor, one of the city’s most active submarkets in office transactions. Downtown Phoenix is approximately 10 miles southwest and Phoenix Sky Harbor International Airport is some 9 miles south of the property.

Camelback Road has seen quite a number of office deals in recent months. Transwestern and C-III Capital Partners paid $60 million for a 218,254-square-foot asset in July, while DRA Advisors purchased a 203,290-square-foot building for $47.5 million on the same street the previous month.