Investments, Office, Sale
News Release: Capacity Commercial Group represents buyer in the Sale of 164K SF North Phoenix Office Property Occupied by Consumer Cellular
September 26, 2018 - Investments, Office, Sale
PHOENIX – September 26, 2018 – Capacity Commercial Group represented the buyer in the sale of a single-tenant, 163,607 square-foot corporate office building, located at 17500 N. Black Canyon Freeway in Phoenix. Portland, Oregon-based BDC Real Estate Investments, LLC, purchased the building, which is occupied by Consumer Cellular. The project was acquired for $39,250,000 in September.
David Ellis and Mike Nye, SIOR, both Principals with Capacity Commercial Group, represented the buyer, Walter Bowen of BPM Real Estate Group. Barry Gabel, Chris Marchildon and Will Mast with CBRE Capital Markets, Institutional Properties, Phoenix represented the seller, a joint venture between Everest Holdings, based in Scottsdale, Arizona, and Walton Street Capital, based in Chicago, in the transaction.
In 2015, BPM Real Estate Group entered the office development, ownership and asset-management business. To date, BPM has acquired and/or developed over $250M of office buildings in Portland, Oregon including Pearl West (155K SF), Broadway Tower (175K SF), 2100 Building (96K SF) and Willamette Oaks (36K SF).
Everest purchased the building—a former Sam’s Club location—in 2014 and completed an extensive repositioning investment to the property earlier this year. The newly redesigned, state-of-the-art facility features a wide-open creative office environment, 24-foot ceilings, ±58K SF floating second floor, open-air community staircase, new modern building entry and landscaping, and an extensive parking field. Consumer Cellular has occupied the building since June 2018.
“Consumer Cellular’s North Phoenix building provided investors with the opportunity to acquire a state-of-the-art office property with a leading telecommunications tenant,” said CBRE’s Gabel. “The property was enticing to numerous buyers for its extensive property enhancements and long-term escalating cash flows in a robust market poised for future appreciation.”
Located within the heart of the Deer Valley submarket, the property is in one of metro Phoenix’s strongest employment corridors with a large concentration of Fortune 500 companies and access to more than 3.1 million people. The site is also conveniently positioned with extensive frontage along the I-17 Freeway and is within two miles of the Loop 101 Freeway interchange.
“Our company is pleased to make this investment in the Deer Park Valley, one of Phoenix’s premier corporate corridors,” said Walter C. Bowen, president of BDC Real Estate Investments, LLC. “It is a bonus to have a tenant like Consumer Cellular already occupying the property. We look forward to our relationship with them and other corporations in the area.”
Dave Ellis, Principal
Capacity Commercial Group
Mike Nye, SIOR, Principal
Capacity Commercial Group