Westport Capital Buys 220,000-SF Suburban Phoenix CRE Portfolio
- Aug 16, 2012
By Barbra Murray, Contributing Editor
Westport Capital Partners L.L.C. expands its footprint in metropolitan Phoenix with the purchase of Agave Center in Tempe, Ariz. The five-structure office and industrial complex adds 220,000 square feet to the real estate investment firm’s local portfolio.
Occupying a 27-acre site, Agave Center features three single-story office structures, a two-story office building and a flex industrial facility. The tenant roster will require some bolstering, as the property’s occupancy level currently stands at 76 percent. Westport is planning to add new life to the leasing program at Agave, and is also working with existing tenants to accommodate their requirements for additional elbow room. Westport, whether it’s cultivating new users or existing ones, is operating in an improving climate in both the office and industrial sectors. It’s all about jobs.
The trade, transportation and professional and business services markets are buoying employment throughout metropolitan Phoenix. The result: the year-over-year office vacancy rate dropped a full percentage point to 21.38 percent in the second quarter, according to a report by commercial real estate services firm Voit Co., and the industrial vacancy rate declined from 13.12 percent to 11.21 percent. When the Phoenix-area real estate market experiences a full renaissance, Westport will be ready at Agave Center, as the property offers 4.6 acres of developable land.
“Westport continues to add attractive, functional assets to our national portfolio that are in strong performing markets,” said Sean Armstrong, principal and portfolio manager with Westport. “This is our fourth investment in the Phoenix area, which continues to be a highly attractive market for owners and companies seeking a business-friendly environment.”