Time Actions Inc. of New York has acquired the 268,516 square foot Paradise Village Office Park in Phoenix. CBRE represented the sellers, Sterling shares and Lincoln Property Co.
Located at 11811 N. Tatum Blvd., the five-story Class A office building features a glass facade, five-story atrium lobby, tenant lounge, conference and training center, and a yoga/fitness room. The property is 72% leased to a mix of national, regional and local tenants.
Financials of the deal were not disclosed and Time Equities did not respond to commercial real estate directorrequest for additional information.
In a prepared statement, Aaron Medeiros, director of acquisitions for Time Equities, said the purchase marks the company’s entry into the Phoenix office market, adding that Time intends to conduct “a business refresh.” ‘entire building’.
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The property was completed in 1986 and underwent a cosmetic renovation in 2015, according to data from CommercialEdge.
Barry Gabel and CBRE’s Chris Marchildon represented the sellers, who had co-owned the property for more than 13 years. CBRE’s Sean Spellman and Corey Hawley, the building’s leasing agents, participated in the sale.
Gabel described the building as “an institutional quality office building, with a significant advantage through leasing and repositioning of the asset and located in the heart of a rapidly improving area with a significant reduction from the cost of replacement”.
The asset is in the Paradise Valley submarket, which has an upscale demographic profile; numerous retail outlets, restaurants and hospitality services; and immediate access to State Route 51. It is also within walking distance of the 92-acre Paradise Valley Mall redevelopment, which is being transformed into an outdoor lifestyle shopping destination and development. Class A multi-family residential.
Not hot at all
The Phoenix Metro office market has seen its overall vacancy rate rise steadily since 2019, as supply increased by more than 3 million square feet and net absorption remained consistently negative, according to a report. of the first quarter of CBRE.
Current overall vacancy in the Northeast Valley/Scottsdale submarket is 19.9%, on an inventory of 21.9 million square feet. Year-to-date net uptake was negative 229,000 square feet, but fortunately virtually no space is under construction.
In a bright spot on the leasing front, Becton, Dickinson and Co. extended its lease at the nearly 33,000 square foot 1 million square foot IDEA Tempe development.