An investor based in the Netherlands has partnered with a private investor in Oregon to purchase a $20.3 million, 95,558 sq. ft. office building leased to the U.S. Department of Veteran’s Affairs in Phoenix. The sales price works out to $212 per sq. ft.
The seller was a real estate development firm based in the Midwest. Marcus & Millichap Real Estate Investment Services brokered the sale. Marcus & Millichap Capital Corp. arranged financing for the buyer in the amount of $15.1 million, according to Marcus & Millichap spokeswoman Stacey Corso.
"The facility was built-to-suit for the VA in 2003," says Travis Trautvetter, a senior associate in the San Diego office of Marcus & Millichap. "The VA occupies the building on an original 20-year lease term. In addition to the strong credit of the tenant, the primary location of this property within Phoenix was a key driver of buyer interest. We received multiple offers on the property, reflecting the strong demand that exists in today’s market for investment-grade assets."
Located at 3333 North Central Ave. in Phoenix, the property is within blocks of the VA Medical Center and St. Joseph's Hospital and Medical Center. Situated on 4.9 acres, the three-story Veteran’s Affairs building serves as the VA’s regional office. Services provided at the site include the Veterans Service Center, Loan Center, National Call Center, Education Center, Vocational Rehabilitation and Employment, Human Resources and Veterans Service Organization.
PHOENIX, Oct. 15, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of a 95,558-square foot single-tenant office building leased to the U.S. Department of Veteran’s Affairs (VA) in Phoenix. The sales price of $20.3 million equates to $212 per square foot.
Travis Trautvetter, a senior associate in the firm’s San Diego office and director of the National Office and Industrial Properties Group, represented the seller, a real estate development firm located in the Midwest. He also procured the buyer, an overseas investor based in the Netherlands, which partnered with a private investor located in Oregon. The transaction was completed in coordination with David Guido, regional manager of the Phoenix office of Marcus & Millichap.
Chad O’Connor, vice president capital markets at Marcus & Millichap Capital Corp. (MMCC), arranged acquisition financing in the amount of $15.1 million for the buyer.
"The facility was built-to-suit for the VA in 2003," says Trautvetter. "The VA occupies the building on an original 20-year lease term. In addition to the strong credit of the tenant, the primary location of this property within Phoenix was a key driver of buyer interest. We received multiple offers on the property, reflecting the strong demand that exists in today’s market for investment-grade assets."
The property is located at 3333 North Central Ave. in Phoenix, within blocks of the VA Medical Center and St. Joseph's Hospital and Medical Center. Situated on 4.9 acres, the three-story Veteran’s Affairs building serves as the VA’s regional office. Services provided at the site include the Veterans Service Center, Loan Center, National Call Center, Education Center, Vocational Rehabilitation and Employment, Human Resources and Veterans Service Organization.