Top 10 Cash-Only Office Deals of 2017

In an intriguing finding, a single metro accounts for the lion’s share of the notable all-cash transactions identified by Yardi Matrix.

Whenever possible, investors looking for stability and risk mitigation opt for all-cash transactions. Yardi Matrix highlighted the nation’s most noteworthy deals involving cash-only ventures in the previous year, with the Phoenix metro area emerging as one of the most active markets for this type of transactions in 2017.

10. 901 Corporate Center Drive

901 Corporate Center Drive
901 Corporate Center Drive

In late 2017, The Foremost Cos. shelled out $11.8 million for a 99,456-square-foot office building. In December, DeVry Education Group sold the asset which features classroom and administrative offices. Located at 901 Corporate Center Drive in Pomona, Calif., the two-story facility is part of the 50-acre University Corporate Center business park.

9. Chandler Falls

Chandler Falls
Chandler Falls

Previously known as the Global Professional Building, Chandler Falls changed hands in late 2017, when The Global Cos. sold the asset to Fullerton, Calif.-based EPI for $12.3 million. Located at 1490 S. Pride Road in Chandler, Ariz., the three-story property encompasses 67,248 square feet of Class A office space completed in 2008. Situated in the city’s Technology Corridor, Chandler Falls is currently fully leased.

8. Carnegie Center – 103 Carnegie Center

Carnegie Center - 103 Carnegie Center
Carnegie Center – 103 Carnegie Center

Part of a 560-acre master-planned office park in Princeton, N.J., the 96,000-square-foot building traded for $15.8 million in July 2017, when Boston Properties acquired the asset from Mack-Cali Realty. Located at 103 Carnegie Center Drive, the building was completed in 1984. Carnegie Center encompasses 16 single- and multi-tenant buildings totaling more than 2.2 million square feet.

7. St. Joseph’s Westgate Medical Office Building

St. Joseph’s Westgate Medical Office Building
St. Joseph’s Westgate Medical Office Building

In 2016, Rendina Healthcare Real Estate developed the three-story property within the St. Joseph’s Westgate Medical Center Campus in Glendale, Ariz. In December 2017, Physicians Realty Trust purchased the 62,000-square-foot asset for $15.8 million from Dignity Health. Located at 7330 N. 99th Ave., the building is near Dignity Health’s new hospital and is 100 percent leased.

6. Tempe Commerce Park – Building F

Tempe Commerce Park - Building F
Tempe Commerce Park – Building F

In a $16.8 million deal, VEREIT acquired the 85,245-square-foot asset from Everest Holdings in December 2017. Located at 7410 S. Roosevelt St. in Tempe, Ariz., the single-story property is part of Tempe Commerce Park, a five-building office complex comprising approximately 400,000 square feet. Constructed in 1998, Building F previously changed hands in 2013, when Everest Holdings partnered with Walton Street Capital and paid $12.2 million for a 160,313-square-foot portfolio that also contained Tempe Commerce Park – Building G.

5. Talavi Tech Center

Talavi Tech Center
Talavi Tech Center

Alaska USA Federal Credit Union acquired the 185,000-square-foot Talavi Tech Center for $17.2 million in February 2017 from West Coast Capital Partners. In December 2017, the credit union cited concerns over natural disasters (mainly earthquakes) and announced its decision to relocate to the newly acquired office building in Glendale, Ariz. Located at 5551 W. Talavi Blvd., the two-story property is near Alaska USA’s data center, which opened in 2012.

4. The Vault

The Vault
The Vault

Harbor Associates—in a joint venture with Goldman Sachs—paid $17.6 million for a historic office building in downtown Denver, making it the buyer’s first investment in the area. The Long Beach, Calif.-based company acquired the 106,231-square-foot asset from an entity controlled by NAI Shames Makovsky in October 2017. Located at 821 17th St., the nine-story building was constructed in 1907, significantly modified in 1927 and restored in 2001.

3. Perimeter Parkview Corporate Center I

Perimeter Parkview Corporate Center I
Perimeter Parkview Corporate Center I

Desert Troon sold the 106,980-square-foot asset to The Roxborough Group for $20.7 million in September 2017. Developed in 2005 on an eight-acre parcel at 8377 E. Hartford Drive, the two-story building is part of the 260-acre Perimeter Center business park in Scottsdale, Ariz. The complex encompasses more than 1.6 million square feet of office space across approximately 30 buildings.

2. 6350 South Maple Avenue

6350 South Maple Avenue
6350 South Maple Avenue

In one of the biggest all-cash deals, Care Capital Properties acquired a 51,200-square-foot building from Aurora Behavioral Health Care for $23.5 million in May 2017. Located at 6350 S. Maple Ave. in Tempe, Ariz., the property was completed in 1986 and underwent cosmetic renovations in 2009. The single- and two-story facility previously changed hands in 2008, when ScanlanKemperBard Cos. sold it for $5.9 million.

1. CBIZ Plaza

CBIZ Plaza
CBIZ Plaza

The largest property on our list traded in February 2017, when LNR Property Corp. sold the 266,166-square-foot asset to Wolf Creek Group for $26 million. Located at 3101 N. Central Ave. in Midtown Phoenix, CBIZ Plaza consists of a 16-story tower, a two-story low-rise building and a six-level parking garage. Boxer Property has managed and leased the property since 2015, and acquired CBIZ Plaza on behalf of the new owner through a Ten-X auction process.

Images courtesy of Yardi Matrix