Lee & Associates Negotiates Sale of Papago Arroyo for $40.85 Million

PHOENIX - March 18, 2015 - PRLog -- Lee & Associates Arizona is proud to announce the three-office building leasehold sale of Papago Arroyo, 1255, 1275 and 1295 E. Washington St., Phoenix for $40,850,000. Combined, the buildings total 279,503 SF which calculates to $146.15 per SF. The cap rate was reported to be 7% based on first year NOI performance.

Lee & Associates’ Coppola-Cheney Group and Jerry Marrell, Principal, negotiated the sale along with Bob Young and Glenn Smigiel of CBRE. The buyer was listed as Papago Arroyo Associates, LLC of Honolulu, HI. The seller was Greenwood & McKenzie RE Investments, of Tustin, CA.

"Papago Arroyo is part of the story that keeps getting better in Tempe. Located along the light rail system, this three-building campus is only minutes away from Phoenix Sky Harbor Airport, three major freeways and Arizona State University, which will always make it attractive to tenants," said Andrew Cheney. "The new development underway in Tempe only adds to this property’s upside, he added.

The stable, Class A project is situated on a ground lease with 68 years remaining. The highly-sought after location has driven leasing demand for the remaining space. It is currently at 96% leased.

The buildings were developed in 1998 are situated on the Tempe/Phoenix border. The property offers 5 per 1,000 ratio of parking, close access to major freeways, light rail stations and Phoenix Sky Harbor International Airport.

For more information:

Craig Coppola, Principal
602.954.3762; ccoppola@leearizona.com

Andrew Cheney, Principal
602.954.3769; acheney@leearizona.com

Jerry Marrell, Principal
602.954.3744; jmarrell@leearizona.com

Gregg Kafka, Associate
602.954.3777; gkafka@leearizona.com

About Us:

Lee & Associates Arizona specializes in providing exceptional commercial brokerage services to the industrial, office, land and investment sectors of the Phoenix commercial real estate market. The Phoenix office was established in 1991 and is now recognized as one of the most successful brokerage firms in the state. Each of our nationwide Lee & Associates offices has a strong local ownership combined with a powerful platform from the national Lee & Associates network.