September 4, 2014 By Kristian Seemeyer– GlobeSt.com.
PHOENIX –EnTrust Realty Advisors has completed the sale of a 164,400-square-foot office portfolio to Adler Realty Investments, Inc., a private investment group. The portfolio is comprised of four buildings at the Corridors Phoenix office park. Located at 1925, 2001, 2075, and 2095 W. Pinnacle Peak Rd., the buildings were developed by The Alter Group.
Adler Realty Investments, Inc. is a real estate investment firm with more than $750 million in acquisitions since its inception in 1996. Adler’s real estate portfolio currently consists of more than 3 million square feet of office, retail, industrial and multi-family residential properties as well as land for development throughout the western United States.
EnTrust represented the seller, The Alter Group. Alter Asset Management will continue to provide property management services to the new owner.
James L. Clark, managing principal for EnTrust Realty Advisors tells GlobeSt.com, the Deer Valley market is reviving lately, with a lot of lease absorption—40,000 square feet at the Corridors property alone. “It’s a reliable part of the market right now,” he says.
“The buyer liked the credit tenancy and the property was 80% leased, leaving some room. It was perfect timing for the buyer—they were in the middle of a 1031 exchange.”
Phoenix has become a prized office market with more than 1 million square feet of net absorption this year, surpassing all of 2013, and is attracting significant interest from investors across the country. Adler Investments was able to structure the transaction as a 1031 exchange in order to achieve their tax planning objectives.
“We’re seeing more and more capital from the West Coast, and also from Canada. That capital is moving inland to Phoenix. In fact more capital from around the US continues to move to Phoenix,” says Clark. “Not just downtown Phoenix, but collar submarkets as absorption starts to move outward to places like Deer Valley.”
The Corridors is an 80-acre corporate office park that is home to a Drury Inn & Suites Hotel and regional headquarters for blue-chip firms such as the Chubb Group of Insurance Companies and the Arizona State Credit Union. The project serves both national and regional headquarters, as well as back-office functions.
Located on the southeast corner of I-17 and Pinnacle Peak Road in the rapidly expanding Deer Valley area, the site is just two freeway exits north of the Route 101 Agua Fria/Pima Freeway, the outer loop road that surrounds Phoenix.
The entire article may be viewed at http://www.globest.com/news/12_938/phoenix/office/Four-Building-Sale-of-Office-Portfolio-349997.html
