Time Equities Inc., of New York, has acquired the 268,516-square-foot Paradise Village Office Park in Phoenix. CBRE represented the sellers, Sterling Equities and Lincoln Property Co.
Located at 11811 N. Tatum Blvd., the five-story, Class A office building features a glass façade, a five-story atrium lobby, a tenant lounge, a conference and training center, and a yoga/fitness room. The property is 72 percent leased to a mix of national, regional and local tenants.
Financials on the deal were not disclosed, and Time Equities did not respond to Commercial Property Executive’s request for additional information.
In a prepared statement, Aaron Medeiros, Time Equities’ director of acquisitions, indicated that this purchase marked the company’s entrance into the Phoenix office market, adding that Time intends to carry out “a refresh of the entire building.”
The property was completed in 1986 and had a cosmetic renovation in 2015, according to CommercialEdge data.
CBRE’s Barry Gabel and Chris Marchildon represented the sellers, which had co-owned the property for more than 13 years. CBRE’s Sean Spellman and Corey Hawley, the building’s leasing agents, assisted in the sale.
Gabel described the building as “an institutional quality office property, with significant upside through leasing and repositioning the asset and located in the heart of a rapidly improving area at a significant discount to replacement cost.”
The asset is in the Paradise Valley submarket, which has a high-end demographic profile; abundant retail, restaurant and hospitality amenities; and immediate access to State Route 51. It’s also within walking distance of the 92-acre Paradise Valley Mall redevelopment, which is being transformed into a premier, outdoor lifestyle shopping destination and Class A multifamily residential development.
Not hot at all
The metro Phoenix office market has seen its overall vacancy climb steadily since 2019, as supply rose by more than 3 million square feet and net absorption remained consistently negative, according to a first-quarter report from CBRE.
Current overall vacancy in the Northeast Valley/Scottsdale submarket is 19.9 percent, on an inventory of 21.9 million square feet. Net absorption year-to-date has been a negative 229,000 square feet, but fortunately, virtually no space is under construction.
In one bright spot on the leasing front, Becton, Dickinson and Co. expanded its lease at the 1 million-square-foot I.D.E.A. Tempe development by almost 33,000 square feet.