An office and medical building in north Phoenix has sold for $20 million.
Cleveland, Ohio-based Woodside Health Development was the buyer, and Vancouver, B.C.-based Talia Jevan Properties Inc. was the seller of the Optum Center at 20414 N. 27th Ave., according to an announcement from Cushman & Wakefield, which brokered the deal.
The building was 94% leased at the time of the sale, with UnitedHealthcare being a major tenant of the property.
Cushman & Wakefield’s (NYSE: CWK) Eric Wichterman, Mike Coover, Alexandra Loye and Steve Lindley represented the seller in the transaction.
Built in 2008, Optum Center spans five stories and 81,907 square feet.
• Over in the East Valley, Parc Broadway has opened its doors in Tempe, with 324 apartment units.
Phoenix-based Evergreen Devco Inc., which has been busy building apartments in metro Phoenix, developed the $6 million community at 711 W. Broadway. It was built by MT Builders Cos. and designed by Todd & Associates Inc.
Amenities on the 8.7-acre property include a Zoom room, large dog park and a “makers space” for local artists to use. In fact, the entire property uses paintings and sculptures from local artists around the Valley.
The property is being managed by Phoenix-based MEB Management Services.
• Also in the East Valley, SmartStop Self Storage has acquired a self-storage and RV storage facility in Chandler for $25.5 million. The seller, Vault at Riggs Road LLC, acquired the property in 2020 and was represented by Denise Nunez and Victoria Filice from NAI. The 150,000-square-foot site is located at 12220 E. Riggs Road in Chandler and offers a mix of drive-up, climate controlled, covered RV and uncovered parking for a total of 702 units.
• Plaza 59, a 32,128-square-foot multi-tenant shopping center in west Phoenix, has sold for $6.25 million. Steve Julius, Jesse Goldsmith and Chase Dorsett from Newmark represented the seller, Plaza 59 LLC – a Scottsdale-based private investor – in the trade to buyer 33rd Ave & Indian School Rd Pros RE LLC. The property is located near the Grand Canyon University Championship Golf Course and was 95% leased to 20 seasoned tenants at the time of the sale.
• Chandler Ranch, a shopping center in Chandler at 1760 W. Chandler Blvd. is nearly completely leased up and is set to see a handful of new tenants open this year. The 117,565-square-foot center, which is anchored by Asian grocery store 99 Ranch Market, is 97% leased and is owned by Houston-based NewQuest Properties. The landlord recently invested $10 million into capital improvements and re-tenanting. NewQuest is putting an emphasis on adding tenants that are attractive to Chandler’s rapidly expanding Asian population. The latest leases include Daiso, Gen Korean BBQ House, The Kickin’ Crab, 85° C Bakery Café and Somisomi Soft Serve. Openings are anticipated to start in the fall and continue through year’s end.
• In Maricopa, south of Phoenix, shopping center Sonoran Creek Marketplace — which is still under construction — has changed hands.
The 75,000-square-foot retail location is anchored by a Sprouts Farmers Market and covers about 14 acres at the southwest corner of John Wayne Parkway and Edison Road.
Thompson Thrift Commercial, a wholly-owned company of Indianapolis-based Thompson Thrift, was the seller and only identified the purchaser as a private buyer from the Pacific Northwest. Financial details were not disclosed.
The shopping center’s first phase opened in August 2021 with Sprouts, Cold Beer & Cheeseburgers, MOD Pizza, Pet Planet, Crumbl Cookies and other shops. The center’s second phase, which is still being built, will include a Marshall’s, NextCare Urgent Care and Thai Chili.
Thompson Thrift said it will continue to oversee the construction of the second phase until it is complete later in the year. The shopping center was the company’s first development in Maricopa.
“Sonoran Creek Marketplace is a development our entire team is very proud of,” said Chris Hake, senior vice president and director of the Southwest region for Thompson Thrift Commercial, in a statement. “We started this development in the early stages of the pandemic, and today’s closing is the culmination of years of hard work put in by our internal team, various consultants and Phoenix Commercial Advisors. A special thank you also goes out to Maricopa’s mayor, city manager and city council who were integral to helping bring this project to fruition.
• A 171-unit apartment complex in Uptown Phoenix has sold for $51.3 million, which equates to $300,000 per unit, according to an announcement from Institutional Property Advisors, a division of Marcus & Millichap (NYSE: MMI), which brokered the deal.
Constructed in 1976, the garden-style property, called Madison Grove, is at 7045 N. 7th St. in Phoenix.
“Surrounded by high-priced single-family residences in North Central Phoenix and Uptown’s restaurant row, Madison Grove has a distinct long-term advantage as home prices soar and high barriers to multifamily entry persist,” said Cliff David, IPA executive managing director, in a statement. “In the last 20 years, less than 1,000 multifamily units have been built in the submarket and minimal multifamily development activity is currently in the pipeline.”
David and IPA Executive Managing Director Steve Gebing represented the seller, Rincon Partners and procured the buyer, Brass Enterprises.
“Madison Grove experienced nearly $78,000 per unit in capital infusion from 2013 to 2017 and by adding washers and dryers to the apartment homes going forward, the buyer can complete the finishing touches on an asset that has advanced its profile better than any other multifamily property in our market built within the 1970s era,” Gebing said in a statement. “It’s truly a one-of-a kind asset.”
• Over in the West Valley, Youngtown House Apartments, a 64-unit apartment property at 11141 W Arizona Ave # B11 in Youngtown, sold for $10 million, according to Marcus & Millichap’s Phoenix office, which brokered the deal.
Richard Butler, senior vice president investments in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller.
The seller was Radu Tomuta, according to real estate database Vizzda, and the buyer was EDGE Capital. The deal closed on May 13.
The seller bought the property in 2019 for $4.1 million.
“The seller decided to exit the multifamily market due to identifying a higher yielding, alternative product investment opportunity in central Phoenix,” Butler said in a statement.
The buyer was represented in the deal by Andrew Tate from Keller Williams Commercial Realty.
“The buyer plans to upgrade this C-grade property to include en-suite washers and dryers, new kitchens, bathrooms, doors, windows, exterior paint, roofs and landscape. They were able to secure a bridge loan for the acquisition and future improvements,” Butler added.
All units are studios and one-bedrooms with master-metered utilities and a chiller system. The property will be rebranded as South Edge Apartments.
Editor’s note: The real estate deal wrap is published regularly by the Phoenix Business Journal. Send new real estate transactions and retail/restaurant leases to managing editor Erin Edgemon, firstname.lastname@example.org.
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An office and medical building in north Phoenix has sold for $20 million.