Desert Ridge Corporate Center Sold for $59M

CBRE announced that it had completed the sale of Desert Ridge Corporate Center in Phoenix, Arizona for $58.6 million, negotiating the sale between the buyer, Los Angeles-based Regent Properties, and the seller, FCA Partners, LLC of Charlotte, North Carolina. The property previously sold Desert Ridge Corporate Center (DRCC) in 2008 by the Southwestern Division of Ryan Companies US, Inc. in Phoenix for $81.6 million in a deal also brokered by CBRE. The property is located on land encumbered by a State of Arizona ground lease with 78 years remaining.

"Despite the fact the property is not fully stabilized, Desert Ridge Corporate Center attracted significant interest from local, regional and national buyers," said CBRE's Barry Gabel. "This is definitely a testament to the continued recovery of the Phoenix investment market as well as the resiliency of the Paradise Valley submarket, which continues to perform at the top of the metro Phoenix market."

"Desert Ridge fits perfectly within our strategy of buying value-added office properties across the western United States," said Eric Fleiss, President of Regent Properties. "We are committed, experienced investors in the Phoenix market specifically, and believe this high-quality asset is a great addition to our portfolio."

The three building property at 20860, 20830 and 20910 N. Tatum Blvd. consists of two class A office buildings and a multi-tenant specialty retail building. At the time of sale, DRCC was 75% leased with major tenants including GEICO Insurance, Vantage Retirement, Wells Fargo Bank, C.H. Robinson Worldwide, K. Hovnanian Homes, Summit Energy, SimonMed Imaging and Scottrade.

For more news and information visit Blumberg Capital Partners.

Regent Buys Atlas at Carlsbad for $16M

LA-based Regent Properties announced this week that it had purchased the former Upper Deck Headquarters in Carlsbad, CA for $16 million. Regent acquired the 246,668-square-foot building at 5909 Sea Otter Place from WP Carey; terms of the deal were not disclosed. Aric Starck, Managing Director with Cassidy Turley's Carlsbad office, represented both the buyer and seller.

"Regent Properties plans to reposition the property to serve growing tenant demand in the market, which has a scarce supply of large blocks of contiguous space," said Starck. "This facility is the former headquarters location of the Upper Deck trading card company and considered a single tenant corporate headquarters building. Regent has begun redeveloping the building to allow for a single tenant or multiple office and R&D tenants."

Improvements under way by Regent Properties include interior renovation and modernization, new exterior glazing, new landscaping, additional parking and site work, according to a GlobeSt.com article. "Carlsbad currently has no new spec construction," Starck told the publisher. "This project will be well positioned to capitalize on an environment where we are seeing significant net absorption and decreasing vacancy year after year."

For more news and information visit Blumberg Capital Partners.

WP Carey Picks Up QBE Holdings Building for $43M

W. P. Carey Inc., the New York-based net-lease REIT, announced this week that it had purchased 2700 Frye Road in Chandler, Arizona for approximately $43 million. The Class A office building was sold by Regent Properties of Los Angeles; terms of the deal were not disclosed. Neil Glassmoyer, senior vice president; Tivon Moffitt, vice president; and Peter Bauman, senior associate; all of Colliers International in Greater Phoenix, served as brokers for the buyer and seller.

"This acquisition represented an opportunity to secure a well-located new Class-A office facility leased to a credit tenant on a site that also offers the possibility for additional development," said W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini. "Located in the Price Road Corridor, one of the most desirable areas of the Phoenix submarket, the investment provides attractive current cash flow."

Regent Properties completed the building’s construction after purchasing the property in 2011 and then fully leased the building shortly thereafter. QBE FIRST, part of QBE Insurance Group Limited, signed an 11-year lease at the property in 2012 providing them with a significant QBE FIRST call center operating as its West Coast regional headquarters.

For more news and information visit Blumberg Capital Partners.