STRATEGIC OFFICE PARTNERS BUYS NEWLY-BUILT CHANDLER OFFICE LEASED TO ALLSTATE
Photo Credit: CBRE
CHANDLER – A company formed by Strategic Office Partners in Phoenix paid $25.21 million ($214.75 per foot) to purchase a 117,394-square-foot office building within the Chandler Corporate Center business park that surrounds the northwest corner of Chandler Boulevard and McClintock Drive in Chandler. PHO Chandler Building 1 LLC, formed by VanTrust Real Estate LLC in Kansas City, Mo. (David Harrison, pres.), was the seller. Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix brokered the sale of the newly-built office structure at 350 N. McClintock Drive. The two-story building, part of a development called One Chandler Corporate Center, is fully leased to Allstate Insurance Co. VanTrust completed development of the Class A office last year and Phil Briedenbach and Ryan Timpani of Colliers International in Phoenix negotiated a 5-year lease agreement for Allstate to occupy the entire building. The office structure occupies 9.73 acres of a 26.7-acre parcel that VanTrust paid $8,456,240 ($7.27 per foot) to purchase in May 2016. Keith Earnest, who heads the Phoenix office for VanTrust, says the balance of the property will include a second phase office building similar to the phase one structure that will be developed either through a build-to-suit deal or as a spec. Construction to start in October with completion expected to follow 12 months later. A site plan for One Chandler Corporate Center shows a third phase office totaling 176,091 sq. ft. and a parking garage, but those plans are still being evaluated and nothing further than the second phase office is certain as of now. Maricopa County records show the first phase office structure was acquired by SOP 350 N MCClintock LLC (Strategic Office Partners entity) in a cash transaction. Strategic Office Partners in Phoenix (Peter Tubesing, pres.), is a wholly-owned subsidiary of TPG Real Estate Partners, which is the real estate platform of the global alternative asset firm TPG. The parent firm, with headquarters in Fort Worth, Tex. and San Francisco, Calif., has $104 + billion in assets under management. Since its inception in 2016, Strategic Office Partners has acquired 25 buildings across the U.S. totaling more than 3.5 million sq. ft. In its last Valley investment reported by BREW in April of 2017, a venture formed by the TPG affiliate and Gramercy Property Trust in New York City, N.Y. (NYSE:GPT) paid $27.65 million ($223.28 per foot) to acquire the ground lease on a 123,864-square-foot office project located within the Arizona State University Research Park that is leased to Amazon Inc. (NASDAQ:AMZN). The purchase of the two-story development at 8375 S. River Parkway included only the improvements and not the 10.89 acres of land under the offices. VanTrust, a privately-held company, formed by Larry Van Tuyl, has developed multi-family, industrial and office projects in the Valley in recent months and last year acquired a prime, 20 + acre site at the southeast corner of Chandler Boulevard and the 101 Loop in Chandler that is targeted for a major mixed-use project. The company has also been active in Southern Nevada, developing more than 5 million sq. ft. of e-commerce and general distribution facilities. Amanda Zakharov, v.p. of acquisitions for Strategic Office Partners in Phoenix, is at (602) 734-5012. Call Earnest at (602) 732-4220. Reach the CBRE agents at (602) 735-5555. Talk to the Colliers agents at (602) 222-5000.
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